Return to Transcripts main page

Live From...

Former FEMA Director Testifies at Senate Hearings; Back to America for Neil Entwistle, Accused of Murdering His Wife, Baby; Opening Ceremonies Under Way at the 20th Winter Olympics in Torino, Italy

Aired February 10, 2006 - 13:58   ET


KYRA PHILLIPS, CNN ANCHOR: Slow, mismanaged, off the mark, doomed to fail from the start or even months before the start. Old complaints and new scathing new allegation about the federal response to Hurricane Katrina from the man who was supposed to be spearheading it. Former FEMA director Michael Brown went before the Senate Homeland Security Committee for three hours today, saying it was higher-ups who failed long before Katrina even existed.

MICHAEL BROWN, FMR. FEMA DIRECTOR: I tell you that what occurred after FEMA was in the Department of Homeland Security. There was a cultural clash which didn't recognize the absolute inherent science of preparing for disaster, responding to it, mitigating against future disasters and recovering from disasters. And any time that you break that cycle of preparing, responding, recovering and mitigating, you're doomed to failure. And the policies and the decisions that were implemented by DHS put FEMA on a path to failure.


PHILLIPS: Homeland security correspondent Jeanne Meserve on Capitol Hill.

Jeanne, what do you think was so different this time that he testified versus the last time?

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: Kyra, this was Michael Brown unleashed. He said it was baloney for top Homeland Security officials to say they were unaware of the severity of effects of Hurricane Katrina, that there had been a series of video teleconferences the day of the storm, laying out the facts.

He also said he had phone conversations Monday with top White House officials. Brown also testified that in the days leading up to the storm, he had warned repeatedly that Katrina could be the catastrophe experts had warned about. But FEMA, he said, was hobbled and hampered in its ability to respond.

But Republican Senator Norm Coleman of Minnesota took Brown to task, telling him he had not exhibited leadership in the crisis.

(BEGIN VIDEO CLIP) SEN. NORM COLEMAN (R-MN), HOMELAND SECURITY COMMITTEE: And Mr. Brown, the concern that I have is, you know, from your perspective I'm hearing balls to the walls. But I'm looking at e-mails and lack of responsiveness. Marty Bahamonde on sending an e-mail about "Situation past critical."

This is on Wednesday at this time. "Hotels kicking people out. Dying patients." And your response is, "Thanks for the update. Anything I need to do to tweak?"

We have questions on...

MICHAEL BROWN, FMR. FEMA DIRECTOR: Senator, with all due respect, you take that out of context because you do that on the fly saying, "Yes, is there anything else I need to tweak?" And what you ignore is what's done beyond that, which is calling the White House, talking to the operations people and making certain that things are getting done.

And I'm frankly getting sick and tired of these e-mails being taken out of context with words like "What do I need to tweak?" because I need to know is there something else that I need to tweak, and that doesn't even include all of the other stuff that's going on, Senator. So with all due respect, don't draw conclusions from an e- mail.


MESERVE: Brown went on to say he had admitted mistakes publicly. "What do you want from me?" he said to Senator Coleman. Brown also said he had been set up to be the scapegoat, the fall guy, and that he felt somewhat abandoned by the administration -- Kyra.

PHILLIPS: So Jeanne, when he was taken out of the position of head of FEMA, Dave Paulison came in. We didn't hear from him for a little while. Then he came back as a consultant.

What happened to that position?

MESERVE: Well, he's been working as a consultant. I asked his lawyer last night for a few more facts about what he had been doing exactly. He couldn't fill me in.

But, you know, the reason we heard so much more from Michael Brown today was that when he had talked previously, he'd been requested by the White House not to give any specifics about his communications with top White House officials. They wanted to protect the confidentiality of White House decision-making.

Well, his lawyer wrote to the White House last week and said, give us some direction here and assure us you will give us some legal counsel if he refuses to testify. The White House did not assert executive privilege, either in the letter back to Brown's lawyer, or in a conversation with the chairman of this committee, Senator Susan Collins of Maine.

And so, Michael Brown said what he had to say. And boy, it was interesting -- Kyra.

PHILLIPS: Jeanne Meserve.


What's the difference between wind and water? In Biloxi, Mississippi, as much as $20 million. Months after Hurricane Katrina, Biloxi still hasn't seen a nickel from the city's insurance companies all because of a phenomenal technicality.

CNN's Sean Callebs investigates.


SEAN CALLEBS, CNN CORRESPONDENT (voice-over): You're looking at the punishing storm surge from Hurricane Katrina that rolled through the heart of Biloxi, Mississippi.

Mayor A.J. Holloway watched the devastation from this vantage point at city hall.

MAYOR A.J. HOLLOWAY, BILOXI, MISSISSIPPI: I'll never forget it, I guarantee you. I never want to see it again, either. I never in the world thought anything would come like this.

CALLEBS: Biloxi's chamber of commerce was here. Nothing is left now. It's one of more than 100 city-owned buildings damaged or destroyed. But so far, Holloway says the city hasn't been paid any insurance money for the devastation, so rebuilding hasn't started.

HOLLOWAY: It's frustrating. You know, we want to get back as quickly as we can. We want our residents to get back here.

CALLEBS: The insurance hold up is a frustration felt throughout the Gulf Coast region. Biloxi's various insurance companies have to decide what was damaged by hurricane winds and what was destroyed by flooding before they'll pay out.

Wayne Tisdale is the insurance industry's broker for Biloxi.

WAYNE TISDALE, INSURANCE BROKER: It's the frustration. And the timing is five months. It should have been settled, in my opinion, by now. But I mean, that's just beyond my control. And it's beyond everyone's control.

CALLEBS: Beyond everyone's control because of the sheer scope of the devastation. Biloxi city leaders have been told their $10 million flood insurance policy will be paid in full, but say that no decision has been made on how much of the $20 million wind damage coverage will be paid. And Mayor Holloway says a lot of insurance adjusters and engineers are taking measurements and poring over the damage.

(on camera): What does it tell you that a lot of suits are bringing in engineers to take a look at all this?

HOLLOWAY: It tells me they're looking for a way out. CALLEBS: Tisdale says it's easy to demonize the insurance industry in times of a catastrophe.

TISDALE: In defense of the industry, I will -- nobody wants to talk about insurance until there's claim.

CALLEBS: Tisdale believes Lloyd's of London and others, insuring Biloxi, will begin writing checks for wind damage in a month to six weeks. The mayor says the city is counting on it. Without the money, the city can't move forward.

Sean Callebs, CNN, Biloxi, Mississippi.


PHILLIPS: Keep in mind we're only talking city-owned buildings here. A great many home and business owners across the Gulf Coast are also waiting for their insurers to pay up.

Two more casualties of war from Iraqi insurgents' weapon of choice. Two U.S. Marines killed yesterday when their patrol hit a roadside bomb near Falluja, just west of Baghdad. Their deaths raise the total of American troops killed in Iraq to 2,267.

Today in Baghdad, a car bomb exploded near a mosque, killing at least seven people and wounding more than 20 others. Later, masked gunmen showed up and shot three people, one of whom died.

Elsewhere in Baghdad, gunmen wearing police uniforms kidnapped a Sunni cleric. Sunnis call it more proof that they are being targeted by Shiite-dominated government forces.

They have been analyzed, scrutinized, hashed out and kicked around. Now Iraqi election results are certified, and the clock is running. Lawmakers have just 15 days to convene the new Shiite- dominated Kurd and Sunni-influenced parliament with the goal of forming a national unity government.

He is accused of killing his wife and infant child, but Neil Entwistle, according to his lawyer, doesn't want to cause his in-laws additional stress. And that, the lawyer says, is why he agreed to return to the U.S. from Britain for trial.

CNN's Paula Hancocks reports the extradition decision came as something of a surprise.


PAULA HANCOCKS, CNN CORRESPONDENT (voice over): A speedy change of heart Friday from the British man accused of killing his American wife and 9-month-old daughter. Neil Entwistle agreed to be extradited to the United States to face charges of murder and related firearms offenses less than 24 hours after he said he did not consent to extradition.

JUDITH SEDDON, ENTWISTLE ATTORNEY: He's consented at the earliest opportunity because he wants to cooperate with the authorities in any way that he can. And he's anxious that a delay may cause his late wife's family and his own additional distress, something he wishes to avoid. He believes that he will receive a fair and proper hearing in the USA of these very serious allegations.

HANCOCKS: Entwistle was arrested Thursday by British police on a London subway train at this station. Hours later, he briefly appeared at Bow Street (ph) magistrate's court. His appearance Friday also lasting just a matter of minutes.

When asked by District Judge Nicholas Evans (ph) if he understood his decision was irrevocable, Entwistle calmly replied, "That's fine, yes." He looked briefly at his father, Cliff Entwistle, mouthing the words, "I'm OK, dad," then signed a waiver giving his consent to return to the U.S. as soon as possible.

(on camera): The final legal hurdle on this side of the Atlantic has been cleared. British home secretary Charles Clark has signed an order authorizing the extradition of Entwistle. Clark's office says these cases can vary, but Entwistle could be back in the U.S. within a day or two.

(voice over): Once there, he will be taken into U.S. custody immediately. If convicted of the murders of 27-year-old Rachel Entwistle and their 9-month-old daughter, Neil Entwistle would face life imprisonment without parole.

Paula Hancocks, CNN, London.


PHILLIPS: Let the games begin. Opening ceremonies under way at the 20th Winter Olympics in Torino, Italy. We're going to take you there live next.


PHILLIPS: Half a century after Italy hosted its first Winter Olympics they're back. This time in Torino -- Turin to most Americans. And the drama's building as the athletes wait for their moments in the spotlight.

Our Alessio Vinci is there, of course. He's Italian. I wouldn't expect him to be anyplace else.

Tell us about the theme of the opening ceremony.

ALESSIO VINCI, CNN ROME BUREAU CHIEF: Well, Kyra, buona sera from Torino, where about 15 minutes ago the opening ceremonies started here at Stadio Comunale, the Olympic stadium right behind me here, behind (INAUDIBLE). They're still (INAUDIBLE), but right now 35,000 people are inside the stadium, and they have paid tickets, expensive tickets between 250 and 1,000 euros to get into this stadium.

Although it is not a sold-out ceremony, we're seeing some scalpers out there trying to sell some of the tickets with some profit. But that did not -- but they -- so they saw it's a bad night for them.

The ceremony is supposed to put together a blend of what is Italy -- it's a blend of what Italy is all about, beauty. It's about style. It's about tradition.

And we're going to see a lot of things that are quite Italian. Giorgio Armani, for example, is dressing the Italian flag. We also, for example, know that there will be some Ferrari cars and some Ducati motorcycles.

And speaking of speed, we understand that -- OK. There are also -- there are also some people here obviously who are not happy about the media covering this story.

Kyra, back to you.

PHILLIPS: That's all right, Alessio. I wonder if we can get -- OK. We don't have it under -- as soon as we get it under control -- obviously there's always people that are disrespectful when it comes to live television.

Alessio, I'm sorry. We'll come back to you once we get that under control.

Well, the first day, the first suspensions. Twelve cross-country skiers, including two Americans, are sidelined for days. All had elevated levels of hemoglobin. That could indicate doping, or it could be something as innocent as the body's response to high altitudes.

The skiers are not expected to miss any events. Zach Lund, though, will miss all of his. This top slider for the U.S. Skeleton Team is banned from the games. He tested positive in November for a hair growth stimulant that can be used to mask steroids.

Arbiters today imposed a one-year suspension effective immediately.

Well, they're the best in the world and ready to go for the gold. But if you think Olympic athletes win or lose on the basis of their training and passion and dedication and equipment and support and luck, you are only partly right. Just as important is something you and I do as well, though probably not as much as we should.

CNN's Dr. Sanjay Gupta reports.


APOLO OHNO, OLYMPIC SPEED SKATER: I'll try to get one 8. It's been 8 and 10.

GRETCHEN BLEILER, OLYMPIC SNOWBOARDER: You're spinning. You're flipping all at once. Yes, I tend to need 10 hours of sleep each night.

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT (voice over): These Olympic athletes know something many of us don't. For peak performance, getting enough sleep is critical.

Gretchen Bleiler, a champion snowboarder, and speed skater Apolo Ohno, a gold medalist four years ago, say all the training they do is wasted without enough sleep.

It's crucial. It means everything. You know, I can only recover if I'm sleeping well. It doesn't matter how hard I'm training. If I'm not getting enough sleep, it's just wasted.

GUPTA: Yet, most Americans manage their lives on less sleep than they need.

MARK ROSEKIND, ALERTNESS SOLUTIONS: Right now our society is horribly sleep-deprived. On average, most adults need about eight hours. And the estimates are that most of us are probably getting an hour and a half less than we need.

GUPTA: What these athletes know that many don't realize, sleep affects memory, learning, and physical performance.

ROSEKIND: With optimal sleep, you could boost somebody's performance by 30 percent. So when you think of even just the smallest improvement in reaction time for somebody where literally milliseconds means the difference between silver and gold, it is huge for the U.S. Olympic athletes.

GUPTA: So huge, the Olympic Training Center took part in a promotion with Dr. Rosekind to redo athletes' bedrooms, including bigger beds and blackout curtains to help athletes get enough Zs. And they Olympic Committee sent U.S. athletes to the games in Torino, Italy, days before their competition in part to adjust to the time shift and jetlag.

STEVE ROUSH, U.S. OLYMPIC COMMITTEE: Getting their sleep pattern as close to their regular routine as possible is critical for the athlete as they travel and are competing.

UNIDENTIFIED MALE: You go, Sean (ph). Yes.


GUPTA: Now, getting 10 hours of sleep is no guarantee that (INAUDIBLE) signature upside-down crippler move in Torino. But not getting enough sleep will certainly hurt her performance, just as it will hurt yours, even if your goal isn't quite as lofty.

Dr. Sanjay Gupta, CNN, reporting.


PHILLIPS: So, is it possible to have too much choice? How much too much television? More and more cable TV subscribers want to buy fewer rather than more channels. LIVE FROM is going to bring you your money's worth as always when we return.

(COMMERCIAL BREAK) PHILLIPS: Live here at B Control at CNN Center, we monitor channel after channel, as you can see, after channel after channel. And some viewers think there are too many cable channels. We cannot get enough. But others take issue with quality more than quantity.

The FCC now concludes most cable subscribers would save money if they could buy only the channels they want instead of buying dozens bundled up by the carriers.

Robert Thompson joins me from Syracuse University, where he is the founder director of the Center for the Study of Popular Television.

And Robert, of course CNN is so popular, we know everybody would pick that a la carte. So we don't need to worry, right?

ROBERT THOMPSON, SYRACUSE UNIVERSITY: Of course. Theoretically, I guess.


THOMPSON: I mean, I think from a common sense standpoint, people hear this and they go, of course. When you go to a restaurant, you don't pay for the entire menu so that you have the right to select those things you actually want to eat. You pay for the things you -- you want to eat.

So I think on the surface most people think this is a no-brainer, of course this would be better for us. However, if you begin to look a little more carefully, this gets a lot more complicated.

First of all, I am not convinced this is going to make cable bills go down. Cable bills seem to operate on the reverse law of gravity. What goes up does not come down.

Secondly, I think what started this whole thing was that people wanted to keep out of their homes things that they thought would be objectionable to children. And that doesn't work so well either because some channels are actually showing stuff that's very nice for children at times, and it's at other times during the day that it's not so well. It's not as easy to make those "family tiers."

And thirdly, culturally, I think a lot of people might be upset over the long-term results of this because even though everybody only watches 12, 17 channels, all that choice they have now might begin to filter down. If each one of these channels has to compete in the marketplace, your favorite obscure channel that you watch may not be around if go to an a la carte system.

PHILLIPS: Yes, you bring up an interesting point about will it be cheaper for us or not, because the FCC was kind of going back and forth. And now it's saying it does look like it would be cheaper. But, if we went a la carte, then wouldn't that create some type of competition, say, if you want CNN versus, you know, another new organization? How would you set the price? I mean, would one be more expensive than the other? Or if it's just news, is it all one price? How do you -- how would that be decided.

THOMPSON: Right. Well, we'd have to see. They would have to come up with a system, which I think the cable industry is loath to do it. Their principle has been, put so much on there that eventually everybody cries "Uncle" and says, OK, that's a channel I really need and then I get cable.

And, you know, the news thing is another interesting case in point. If you were buying completely a la carte, I suppose you would choose your favorite 24-hour news channel. And if you were a FOX News type, you would choose that and you would ignore the rest. If you were a CNN, you'd choose that and ignore the rest.

And I don't know that culturally that's necessarily a good thing. I like the fact that everybody with cable has got a lot of voices coming into their living rooms, the three networks, the three cable 24-hour news channels.

This would be one more way in which this fragmentation of the society, you could simply choose the channels that you already agree with and nobody would ever have to, even accidentally while channel surfing, be exposed to something that they are not interested in.

So, a lot of cable channels I never watch, but occasionally because they are there, I stumble into and hear something that's actually interesting. This would go away because you wouldn't have that serendipitous effect anymore.

PHILLIPS: So we would lose diverse voices. A lot of minorities would probably be forced out of opportunities here. And startups, right? Because a lot of times, like you said, you are flipping through and you think, ooh, that looks a little interesting, and sometimes you catch on to it.

THOMPSON: Yes, it's hard enough to get a new cable channel on to a system now the way it is. With a la carte, we are essentially saying that each one of these channels has got to be pulling their weight. Now a lot of these little channels are, in effect, subsidized by the fact that this bundling occurs.

On a rational level, I can understand why a lot of people don't think that makes sense. But once they can buy anything they want a la carte, a lot of the menu might in fact get smaller. There might not be their favorite channels to be purchased a la carte at all.

PHILLIPS: All right. Bottom line, when are we going to know if this indeed is going to go forward?

THOMPSON: Who knows? I mean, they discuss these things. They debate about them.

Some of this stuff goes on for a long, long time. And I think the cable industry is going to be very strongly lobbying against it. So we'll have to wait and see.

PHILLIPS: All right.

Robert Thompson, Syracuse University.

Thanks a lot, Robert.

THOMPSON: Thank you.

PHILLIPS: Well, a very goofy sports trade to tell you about now. A veteran sportscaster is being traded for an old rabbit. Susan Lisovicz has the story now live from the New York Stock Exchange.


PHILLIPS: Well, if you grew up in the Cold War, you might remember this: first a turtle taught kids what to do if a bomb dropped. Now the Department of Homeland Security has a new way to teach kids to prepare for terrorism.

We'll show you later on LIVE FROM.


PHILLIPS: My director and TD remembered ducking cover. So we are going to have a little film flashback here to '50s.

All right. I'm sure you remember the wisdom within "Father Knows Best," parental expectations from "Leave it to Beaver." But what about that film that talks about Cold War, bomb shelters and the threat of nuclear attacks? Well, if you were a kid in the atomic bomb age, like Roger and Matt, you will no doubt remember how the government wanted to prepare you for the unthinkable.


UNIDENTIFIED MALE: They always try to remember what to do if the atom bomb explodes right then. It's a bomb. Duck and cover.

PHILLIPS (voice over): The Civil Defense Department classic duck and cover was first distributed in 1951 and was seen by thousands of the nation's schoolchildren. It's such a touchstone of the atomic age that it's on the National Film Registry of culturally, historically and aesthetically significant motion pictures. But even though most baby boomer cans laugh about the film and the drills now, many people remember being just plain terrified at the possibility such an attack would actually happen.

UNIDENTIFIED MALE: The bomb can explode any time of the year, day or night. Duck and cover. That a boy, Tommy.

PHILLIPS: That was then. This is now: the war on terror, killer hurricanes, and let's not forget bird flu.

Once again, the government has decided it would be a good idea to encourage children to prepare for the possibility of disaster. UNIDENTIFIED FEMALE: One of the nicest, most helpful mountain lions I know, Rex.

PHILLIPS: This time it's the Department of Homeland Security. And it's enlisting a family of friendly mountain lions to give child- friendly advice in the Ready Kids campaign. Along with tips about making plans and survival kits, the Web site has interactive features, like the Hidden Treasure game.

Here's an example. What do the mountain lions have around the house that can help in an emergency? A battery-powered radio, a picture of someone like grandma to call in an emergency.

Support materials have been sent to 135,000 elementary schoolteachers across the country so children are likely to hear about Ready Kids in class. Homeland Security Chief Michael Chertoff says his department is working with teachers and psychologists to help make lessons age appropriate and helpful instead of anxiety provoking.

MICHAEL CHERTOFF, HOMELAND SECURITY SECRETARY: And nothing is more important than preparedness and reaching young people, as well as people in business and people in other responsible walks of life as a critical element in the area of preparedness.


PHILLIPS: So plan and prepare instead of duck and cover. Peggy Conlon helped design the Ready Kids Campaign. She is president of the Ad Council, and joins us live from New York to talk about it. Peggy, how did you put the project together?

PEGGY CONLON, PRESIDENT, AD COUNCIL: Well, we worked with the Department of Homeland Security, and of course, child psychologists, to come up with messages. And this is really in response to requests from parents and teachers about helping them to frame this conversation with their children when they want to bring them into the family preparedness plan.

PHILLIPS: Why would they gear it toward eight to 12 years old?

CONLON: Well, the reason we geared it towards this age group is because this is the time that specialists tell us that children began to hear messages from their friends, on the news, about things that concern them, whether it's hurricanes or earthquakes or terrorists things.

And they really go to their parents and to their teachers to get more information, so the Department of Homeland Security developed these tools to help frame the conversation in a very engaging and non- threatening way for these children.

PHILLIPS: How did you find that balance? You don't want to scare kids, but at the same time, you want them to understand look, if something happens, they have got to know how to react.

CONLON: Absolutely. And I think that children just like adults are really more calm and feel more in control when they know that they have taken control of their surroundings.

So the whole process of parents and teachers teaching kids how to make a communications plan, how to participate in building a family kit, really engages the children in a very positive way that will help to allay any fears should, God forbid, anything happen.

PHILLIPS: All right, let's talk about the creative process here, Rex the Lion, sort of the Smoky Bear of 2006.

CONLON: That's right, Rex the Lion is a very engaging character along with his wife Priscilla and their daughter Rory, and they really act as both the messenger and role models for children to see how they, together as a family, make a communications plan, make a kit, and generally prepare for any eventuality.

PHILLIPS: And if you look at the activity book -- I noticed from the activity book to the stickers to the characters in the activity book, you have got a lot of cartoons specifically talking about coming together as a family to organize this plan through creative ways, like putting a kit together through a scavenger hunt.

Kind of tell me about the cartoon and then tell me about the scavenger hunt and how you sort of incorporated all of this in the activity book.

CONLON: Right, well, there are games that children can play. And I think the scavenger hunt is really a wonderful one. Talk about empowering children. Basically what you'll say to these children is let's identify around the house things that we will need for our kit.

Well, we know we need water. How about nonperishable foods? What would you like to have in the kit? What kind of foods do you like? Do you want peanut butter, some crackers, some cookies? What about games to play if we can't watch television? What favorite toys would you like to have? So it really engages the child in a very positive and comforting way.

PHILLIPS: So, Peggy, if there is a school principal or the head of the district or even a family at home that wants to get their hands on one of these kits or even get it into their school, how do they go about doing that?

CONLON: Well, the kits can be ordered off of the Web site. It's and then you click on "Ready Kids." And parents can go online with their children, download the information, and order things like the kits and the stickers right off the Web site.

PHILLIPS: Peggy Conlon, thanks for your time today.

CONLON: Thank you.

PHILLIPS: Well, attention parents of kids diagnosed as attention deficit. A federal panel says that drug prescribed for ADHD -- that's attention deficit and hyperactivity disorder -- should be relabeled with the strongest possible warning. Two million kids in the U.S., including nine percent of 12-year- old boys, take in Ritalin or similar drugs, and more and more adults take them too. They have now been blamed for 25 deaths between 1999 and 2003, 19 among children. The Food and Drug Administration will have the final word.

An update now on the NHL gambling scandal. How much did the great one know, and is he playing defense for his wife? The news keeps coming. We'll keep bringing it to you. More LIVE FROM after this.


PHILLIPS: Fashion Week wrapping up in true show biz fashion, saving some of the biggest names for last: Ralph Lauren this morning, Donna Karan this afternoon. Let's check in with our Sibila Vargas to find out what's on the cutting edge.

SIBILA VARGAS, CNN ENTERTAINMENT CORRESPONDENT: Hi, how are you? I'm so excited right now. I'm with Manuel Cuevas, and he is possibly the most famous man that you have never heard of. You have just shown right now. How are you feeling?

MANUEL CUEVAS, FASHION DESIGNER: I feel like a million dollars. You know, I always say that. I think I'm, of course, overwhelmed by the attention that all my friends and my clients are having over this event. I didn't know it would be that great, but I'm so happy to be here. New York just amazes me. I'm full of gratitude for everything.

VARGAS: This is his first show. And this man actually created the look for Elvis back in the day, the white suit with the rhinestones. This is your creation.

CUEVAS: Correct. Well, you know, like Elvis Presley, there was other people in the world. Like I said, Ricky Nelson, Bob Dylan -- you name it. Everybody was at the time happening and, of course, a lot of people like The King and a lot of people liked The Beatles, a lot of people liked The Rolling Stones.

VARGAS: All of you which have dressed?

CUEVAS: I dressed, but so did Grateful Dead, so did Chicago, so did Earth, Wind and Fire -- everybody.

VARGAS: You created -- he created the logo for The Rolling Stones, the lips, and you also created the logo for the Grateful Dead.

CUEVAS: Well, in a way it became that because I was doing those type of designs. But it was no logo intentions. There's no logo nothing, that's just my gift to the world, whatever that is.

VARGAS: I see you are also wearing dark. I mean, you are all in black.

CUEVAS: I am like Johnny Cash in Austin, Texas (ph) now.

VARGAS: OK, and let's hear this story about how Johnny Cash asked you for some suits, and then what happened?

CUEVAS: Well, that was at the beginning of his career, 1956, '57. Years are hard to remember now. And it was during the "Walk the Line" song. And it was a hit, and he was thrilled. He was going on the road and he needed clothes like crazy, so I went and made nine suits that he ordered.

And he called me, and he says I got the suits. And he says how come are they all black? I said well, they are not the same style. And he said, let's try it. And for 40 some years -- I hate to say how many -- he kept all these suits. And, at the end, he always say, you know, black.

VARGAS: He became famous for that. That's pretty amazing. I hear that you love rhinestones, first of all. We know that already. I mean, Dolly Parton, you also design clothes for her. These are some of your designs over here. They say you use up to 20,000 rhinestones a year for your designs?

CUEVAS: No, no, no. Probably about five million.

VARGAS: Oh, I'm sorry about that. Five million!

CUEVAS: Yes, I know, rhinestones, they go by the thousands. In one jacket -- from 2,000 to 10,000 rhinestones in each jacket.

VARGAS: Wow, that is great. Well, thank you very much for joining us. I know this is your son right over here, Manuel. The other Manuel. I know he's going to be taking over the reins. Thank you very much. It was such a pleasure talking to you, and I am so happy that you got your show out. Finally! Seventy-three years old and finally got his show out. He's been dressing the best.

PHILLIPS: Sibila Vargas there at Fashion Week. Thank you so much, Sibila.

Well, this is kind of on the note of fashion, sort of. There's machines, free weights, swimming pools and stilettos. It all makes sense, right? They all go together? Well, a crunch gym in Manhattan is teaching a class called "Stiletto Strength," designed to help women pump up for pumps after a long winter. Students start out in running shoes to focus on balance, posture and strengthening the lower body, and they break out the heels for the last 15 minutes. Try not to break anything else. And do men and women do that class?

Hockey's great one speaks out about gambling. We're talking about Wayne Gretzky. His wife Janet Jones is among those reportedly being investigated in connection with a nationwide gambling ring. Sources tell the Associated Prices of wiretaps indicating Gretzky knew about the operation and about his wife placing bets. Gretzky denies involvement of his own.


WAYNE GRETZKY, HOCKEY COACH: I'm not going anywhere. I'm still going to coach the Phoenix Coyotes. I've done nothing wrong or nothing that has to do with -- any sort of on the lines of betting. That's just never happened.


PHILLIPS: Gretzky's wife has issued a statement denying that she placed any bets for her husband. Her assistant coach -- or his assistant coach, Rick Tocchet, is accused of bankrolling the gambling ring. He denies it.


PHILLIPS: Whether you are for it or against it, you can't deny it. More states now having legalized gambling, business is booming. Here's the facts.


TONY HARRIS, CNN CORRESPONDENT (voice-over): Gambling has grown into a $60 billion industry in the United States. Whether it's on poker, sporting events or online, about 70 percent of American adults say they have gambled at least once in the last year. Nine to 12 million Americans become problem gamblers each year. Three million might even be described as pathological gamblers.

A pastime once dominated by men, experts say women now make up about 50 percent of gamblers in the United States, though they tend to prefer casino games and slot machines. Experts say men still prefer sporting events and poker.


PHILLIPS: Up next on LIVE FROM, stories of gators in New York sewers have been debunked, but now there may be a killer lizard on the lam in California. We're monitoring the situation. Don't tell Wolf Blitzer.


PHILLIPS: A mist-shrouded lake, a fully scaled beast, a community with the collective case of the jitters. It isn't Loch Ness, but the Otay Lake near San Diego, California, where residents, fishermen and animal experts are all on alert for a lizard on the lam. Locals call him "Otayzilla."

Well, you can see for yourself, the resemblance is pretty amazing (INAUDIBLE). Critter is thought to be a Nile Monitor lizard and is, in all likelihood, an escaped or liberated pet. The owner may not have realized these cute little carnivores can grow to seven feet long. Current estimates put Otayzilla. And since Nile Monitors can stay underwater for an hour at a time, well, we wish that search team luck.

Our first ever animal adventure follow-up. A dog paddling for half an hour in icy waters. We brought you the rescue earlier this week, but details were sketchy. We didn't even know the frosty Fido's name or how it happened.

Well, now we do, thanks to Jeremy Hubbard of our affiliate KDVR.


JEREMY HUBBARD, KDVR REPORTER (voice-over): She is a year and a half old redhead named after Lucille Ball, but the predicament this retriever got into is crazier than any "I Love Lucy" skit.

ELAINE BARR, LUCY'S OWNER: Quite unexpected.

UNIDENTIFIED MALE: The fire department is rescuing a golden retriever who fell into a pond.

HUBBARD: The retriever had to be retrieved because she was on thin ice after running out on to this lake during her morning walk.

BARR: She's not real well-behaved at the moment.

HUBBARD: Elaine Barr, Lucy's owner, says the dog loves to go into the lake, chasing golf balls and geese. But she fell through the ice today and spent more than a half hour treading water. Elaine's husband, who was with Lucy, panicked.

BARR: He was quite worried and said he was just about ready to go out on the ice. He didn't, and the firemen came, and they did a great job.

UNIDENTIFIED MALE: We went ahead and pushed the raft out, grabbed the dog real quick, and was pulled back in.

UNIDENTIFIED MALE: Excellent, there we go!

UNIDENTIFIED MALE: It's kind of what we do.

HUBBARD: Just after the rescue, Elaine's husband bob took Lucy home, where she was blown dry and covered in blankets and heating pads. Her owners say she has had her last swim until spring. And if this happens again, this Lucy, like her famous namesake, will have some explaining to do.



PHILLIPS: Barbie dolls aren't exactly known for their realistic portrayal of the human body, but a girl in Florida found an especially poignant discrepancy. So her mom went on a mission.

Josh Thomas from affiliate WFLA has the story.


JOSH THOMAS, WFLA CORRESPONDENT (voice over): Eight-year-old Morgan Kelly is just like any other girl who enjoys playing with dolls. The only difference she does it in her wheelchair and that got her thinking. MORGAN KELLY, 8 YEARS OLD: And I was just wondering why can't there be a doll on a wheelchair, and I asked my mom. My mom went searching on web sites and stuff like that, and we just couldn't find one.

THOMAS: That troubled the mother of this young girl, who has the muscle weakening disease spinal muscular atrophy. She couldn't understand why they couldn't get their hands on a disabled Barbie doll.

ANGELA FLOYD, MOTHER: The clincher was when she looked at me and says don't they think handicapped people are pretty enough to be a Barbie, and that really got me.

THOMAS: They wrote Mattel, the makers of Barbie, and found out the company did make a wheelchair-bound doll called Becky in 1997. The company no longer produces the doll, but they found one for Morgan and sent it to her.

KELLY: My mom had this huge box. And I look in it and there's a Barbie doll in it. And I said wow, mommy, it looks like me. And I liked it.

THOMAS: Her mother wasn't looking for a freebie, but she appreciates the fact the company made the effort to find the doll that reminds her of her daughter.

FLOYD: They did something way beyond the call of duty. I mean, sending the Morgan the doll is beautiful. And they got it from a toy library. Where that toy library is I don't know.

THOMAS: And it really doesn't matter to this young girl who hasn't let her disability stop her from doing things like cheerleading. For her mother there's a lesson to be learned, sometimes corporate America listens.

FLOYD: That's a big deal from such a large company. You know, they probably get asked all the time a lot of questions. But obviously maybe the questions we asked made them think.

THOMAS: Josh Thomas, news channel 8.


PHILLIPS: Well, she's 37 pounds of determination and joy. That's right. This new mom weighs 37 pounds.


UNIDENTIFIED FEMALE: I wasn't worried about myself. I was worried about him having enough room inside of my stomach, but for me I wasn't worried.


PHILLIPS: A rare disorder doesn't stop Eloysa Vasquez from living her dream. LIVE FROM celebrates life straight ahead.


PHILLIPS: Fog is lifting. Anna McCloy says her husband, Randall, is starting to communicate almost six weeks after being pulled more dead than alive from the Sago Mine.

Anna says that her husband is interacting with others, moving his eyes, making faces and speaking, a word here and there but only to her.

A family spokesperson confirms to CNN McCloy wrote his family a letter like some of the other miners did right before they died. His reads in part, Anna, I love you so much. To my son, trust in the Lord. To my daughter, stay sweet.

She may not be a southern belle, but a pint-sized new mom gets our vote for steel magnolia of the week.

Karina Rusk of our affiliate KGO in San Francisco tells why.


KARINA RUSK, KGO CORRESPONDENT (voice over): Eloysa Vasquez always dreamed of having a baby. Timothy is her dream come true.

ELOYSA VASQUEZ, MOTHER: I'm just blessed with this baby. And I just thank God he allowed us to have him.

RUSK: Timothy was born premature weighing 3 pounds, 11 ounces. But what's more remarkable is that his mother weighs just 37 pounds.

DR. JAMES SMITH, PACKARD CHILDREN'S HOSPITAL: This patient is affected with osteogenesis imperfecta type three, which is very rare condition of abnormal bone development.

RUSK: That bone disorder has confined Eloysa to a wheelchair since she was 10, but her condition never stopped her from wanting a family.

(on-camera): It is easy to understand how Eloysa's small frame and brittle bones would make a pregnancy high risk. Before Timothy, Eloysa had two miscarriages.

(voice over): During this pregnancy Eloysa gained 20 pounds, almost half her body weight. As the baby grew so did her maternal instincts.

E. VASQUEZ: I wasn't worried about myself. I was worried about him having enough room inside of my stomach. But to me I wasn't worried.

RUSK: But Dr. Smith says the growing fetus was affecting Eloysa's ability to breathe. On January 24th at 32 weeks, Dr. Smith delivered a healthy boy via c-section. Father, Roy, says he never doubted the outcome. ROY VASQUEZ, FATHER: If the faith is there, it will happen.

RUSK (on-camera): And you feel very blessed.

R. VASQUEZ: Very, very, twice. My wife and my son.

RUSK (voice over): Doctors say there's no indication Timothy inherited his mother's disorder and should be able to go home in a few weeks. For now home is in Eloysa's arms.

E. VASQUEZ: And it just feels wonderful. I mean, words cannot describe the way I feel.


PHILLIPS: Grip and grin, photo-ops aside, President Bush says he doesn't know Jack Abramoff, but e-mail from the disgraced former lobbyist paints a different picture. We have got details. The third hour of LIVE FROM starts right now.