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Hamas Accepting Deal That Implicitly Recognizes Israel; Gut- Wrenching Moments in First day of Andrea Yates' Retrial

Aired June 27, 2006 - 14:30   ET

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

KYRA PHILLIPS, CNN ANCHOR: Getting a little more information now about these live pictures out of Houston via our affiliate KRIV. A train derailment that took place here -- actually not live pictures, I apologize, the tape turnaround. We just got a little more information.
There's actually a car, we're being told, that got knocked into the creek not far from this derailment. But so far, no reports of any injuries, just a pretty messy scene there in Houston. We're following this. If we get more details, we'll bring them to you.

Well firefighters are bringing in the heavy equipment at a motel in northern Georgia now. As you can see, well, they pretty much need it. An explosion brought down a big chunk of roof and scattered bricks, furniture, other debris from the two-story building all over the parking lot. No one is known to be hurt, but a maintenance worker is missing and feared dead -- or fear trapped, rather. There is also no word on the cause of the blast, but an arson team is investigating.

Gut-wrenching moments in the first full day of testimony in Andrea Yates' retrial. Prosecutors in Houston played crime scene video of the Yates home taken just after she drowned her five children. Observers say that Yates sobbed at the sight of her oldest boy lying face down in the bathtub. Her other children laid out on a bed. Yates' attorney is hoping to convince the jury she was not in her right mind. A defense her ex-husband, the father of the dead children, supports.

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RUSTY YATES, ANDREA YATES' FORMER HUSBAND: For a long time she has blamed herself and she's -- it's been a lot easier for those of us who know her and love her to forgive her than it has been for her to forgive herself. And I think now she's at least hoping that she's found not guilty by reason of insanity so she can spend her time in a hospital rather than in a prison.

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PHILLIPS: Well if convicted, Andrea Yates will be sentenced to life in prison.

The man dubbed the "Railroad Killer" has just hours to live unless the Supreme Court steps in. Angel Maturino Resendez is scheduled to be executed tonight for murdering Dr. Claudia Benton in her Texas home in 1998. Resendez has been linked to at least 15 other killings across the country dating back to 1986. Authorities say that he used freight trains to get around and focus his random attacks near rail lines.

Well the embarrassment factor outweighs the legal exposure in the latest ordeal of Rush Limbaugh. The right-wing radio talk show host could face misdemeanor drug charges over a bottle of Viagra discovered by customs agents at Palm Beach International Airport. No, Viagra is not a crime, but Limbaugh was detained for hours because the label bore the names of two doctors. His own name wasn't on it. Limbaugh's attorney said it was done that way for privacy. Just last month, Limbaugh reached a deal with prosecutors who accused him of illegally obtaining prescription pain killers.

All families feud at one time or another and the only difference with rich families is the feuds are bigger. From Massachusetts comes a Shakesperean tale of intrigue and betrayal all surrounding a nine- figure trust. A term that, in this case, is rich in irony. CNN's Dan Lothian explains in this report from "AMERICAN MORNING."

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DAN LOTHIAN, CNN CORRESPONDENT (voice-over): He's a former MIT professor, and Internet guru, a multimillionaire. So when John Donovan Sr. was shot and wounded in his company's parking lot, the attack grabbed headlines.

UNIDENTIFIED FEMALE: Makes you wonder, like, what actually happened and what was going on.

LOTHIAN: Initial reports seemed to indicate a sinister plot with international ties.

MARTHA COAKLEY, MIDDLESEX CO. D.A.: He said that he had -- there were two men, he did not know who they were, spoke in a foreign accent, probably Russian, who had shot at him.

LOTHIAN: Then a stunning revelation.

COAKLEY: He did indicate to police that he believed that his oldest son, James, was probably behind this attempt on his life.

LOTHIAN (on camera): Donovan has been in a long legal battle with his five adult children over the family fortune opinion, and one of the multimillionaire's daughters accused him of sexual abuse, which he denies. Wait until you hear from prosecutors say really happened in this parking lot outside his office.

(voice-over): They say Donovan, who wasn't seriously injured, tampered with a surveillance camera, then shot himself in the abdomen, implicated his son, and then staged a burglary at his mansion north of Boston, all to gain the upper and in a heated family feud over an estimated $180 million trust.

Even more troubling, court documents revealed there was a to-do list found in his coat pocket, allegedly detailing the steps to stage his own shooting. Like this entry, "eight shells -- four in front, four outside."

Donovan's attorney, who declined to be interviewed, on camera says his client firmly denies he was anything other than the victim of a vicious crime.

But the well-regarded businessman, who has started several successful companies, has been indicted and a misdemeanor count of filing a false police report, in a soap opera-style case where prosecutors allege he wrote the script.

Dan Lothian, CNN, Boston.

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PHILLIPS: Well Donovan faces a maximum sentence of one year in prison if convicted. Watch more of Dan Lothian's reports on "AMERICAN MORNING" with Soledad O'Brien and Miles O'Brien weekday mornings beginning at 6:00 Eastern.

Well, he's a prolific music producer known for his work with multi-Grammy artists. Now, he's behind bars in another country. What's the deal with Dallas Austin. Details on LIVE FROM straight ahead.

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PHILLIPS: Once again these pictures from our affiliate KRIV in Houston, Texas. This is what we can tell you. About a dozen cars left the tracks today in a derailment along Highway 90 in northeast Harris County. You can see the footage here from the helicopter. A couple of the tanker cars overturned as well.

One rail car, rather, has been seen in the creek that's right there along the railway bridge. So far, no word on what caused this afternoon accident in the Houston area.

We're told that nine of those cars that derailed were loaded, three were empty, two of them contained methanol. HAZMAT says that nothing has spilled at this point and that, definitely one of those cars have rolled into that creek not far from the rail. So still don't know how exactly it happened. We're tracking those details, but we're getting more, and we'll bring it to you as we get it.

Well, never say never in the Middle East. Word today of Hamas accepting a deal that implicitly recognizes Israel, a state that the militant group not only has refused to recognize, but has dedicated itself to destroying. The apparent breakthrough comes in a plan promoted by the Palestinian president, who, unlike most of the Palestinian government, is not from Hamas. Both sides hope that it will end the international sanctions that followed Hamas' rise to power.

All the while, 3,000 Israeli troops are massed along the border with Gaza, waiting for borders -- or orders, rather, to move in unless a kidnapped soldier is returned.

Now, Palestinians expect the invasion to begin within hours.

CNN's John Vause reports for us from Gaza City.

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JOHN VAUSE, CNN CORRESPONDENT (voice-over): This is the buildup to what the Israelis say could be a prolonged military offensive: tanks, armored personnel carriers; and hundreds of troops massed on the border of Gaza, awaiting orders to attack, an attack which may be imminent.

UNIDENTIFIED MALE (through translator): There is no doubt we will have to carry out an operation which could cost many lives. But the Palestine groups have to understand there is a price to pay for any attacks against Israel.

VAUSE: Altam Hussein (ph) has been watching the Israeli buildup from the roof of his home in Raffa in southern Gaza, just across the border from the Israeli military base which was attacked. Like so many here, he took genuine satisfaction in the weekend raid but now worries for the safety of his five children.

UNIDENTIFIED MALE: Yes, I'm very worried. And all of them, they are worried.

VAUSE: And the time has come, he says, to hand the Israeli soldier back. "We don't need more bloodshed," he told me, "for us and for them."

But Palestinian militants are preparing for what will almost certainly be a bloody confrontation. Fighters from Islamic Jihad have been laying what they say are homemade explosives.

"We're dealing with a ruthless enemy," he says. "And any threat from them we take seriously. Our fighters are ready to stop any invasion."

And on major roads throughout Gaza Palestinians have dumped piles of sand intended to slow the advance of Israeli tanks and armor and provide cover for gunmen. And Palestinian militants warn, regardless of any military action, Israel will not find 19-year-old Gilad Shalit.

"We're completely sure the kidnapped soldier is in a secure place that the Zionists cannot reach," he says.

Gaza is now closed off by land and by sea. Israel is stopping shipments of food and fuel and has warned Hamas leaders they could be assassinated, including the exiled Khaled Meshaal, based in Damascus, even the Palestinian prime minister, Ismail Haniyeh.

(on camera): Amid this escalating crisis, a political breakthrough: Hamas has agreed to demands by the Palestinian Authority president to accept a two-state solution, implicitly recognizing Israel. Under normal circumstances, that would be a step toward restarting peace talks with Israel. But peace talks are impossible now while an Israeli soldier is being held hostage. John Vause, CNN, Gaza.

(END VIDEOTAPE)

PHILLIPS: Patriotism, politics, or both? Just in time for the Fourth of July, the Senate is debating a constitutional amendment that would ban burning or otherwise damaging the American flags. Opponents say it's closer to approval than ever before. Opponents say conservatives are just trying to rally their base ahead of the mid- term elections.

Here's both sides.

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SEN. MEL MARTINEZ (R), FLORIDA: The desecrating of the flag does nothing to celebrate or enhance our expressive freedoms while it clearly dishonors those who have seen the flag as the basis for their service and sacrifice.

SEN. RUSS FEINGOLD (D), WISCONSIN: We do not need a constitutional amendment to teach Americans how to love their country or how to defend it from its enemies.

(END VIDEO CLIP)

PHILLIPS: Well, the measure has passed the House. If 67 senators go along, it will still have to be approved by 38 states to become the 20th amendment to the Constitution.

Straight ahead, entertainment news with Sibila Vargas. Sibila, what's on tap?

SIBILA VARGAS, CNN ENTERTAINMENT CORRESPONDENT: Well, he's a huge music producer that has worked with such legends as Michael Jackson, Madonna and Aretha Franklin. Now he's facing the music in Dubai. We'll have the story when LIVE FROM continues.

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JOHN OXENDINE, GA INSURANCE & SAFETY FIRE COMMISSIONER: Explosion most likely happened on the ground floor in that adjacent building. Really, a lot of rumors of what it is. I think I've heard half a dozen rumors this morning about what caused the explosion. We don't know.

Was the explosion intentional? Was it accidental? We don't know. It's going to be a very long search and rescue process, probably 10, 12 hours. My arson and explosive investigators are probably not going to be able to get in there until tomorrow morning. First we need to take care of the search and rescue.

(END VIDEO CLIP) PHILLIPS: Well, firefighters are bringing in the heavy equipment at a motel in northern Georgia. And you can see why they need it. An explosion brought down a big chunk of the roof and scattered bricks, furniture and other debris from the two-story building all over the parking lot. No one is known to be hurt, but a maintenance worker is missing and feared trapped. An arson team, as you heard, is now investigating this.

(WEATHER REPORT)

PHILLIPS: Well, here's a story to sink your teeth into. Remember Axl Rose of Guns N' Roses? Of course you do. Although 40 is shrinking fast in his rearview mirror, it apparently didn't stop him from asking like a 2-year-old in Stockholm, Sweden. Rose is in jail after allegedly biting a hotel security guard.

Swedish tabloids will ponder that concept a little later, and say the dental incident occurred when the guard tried to stop Rose from arguing with an unidentified woman. Stockholm police say that Rose was too drunk or high to face immediate questioning, so prosecutors will have to wait before deciding whether to press charges.

In jail in Dubai, American music producer Dallas Austin facing drug charges. He's worked with some of the biggest names in the business: Madonna, Michael Jackson, Aretha Franklin.

Our Sibila Vargas has more on the accusation that Austin brought cocaine into the United Arab Emirates. What do we know, Sibila?

VARGAS: Well, that's right. Hip-hop producer Dallas Austin is in nasty trouble in Dubai in the United Arab Emirates. Austin, who has an A-list musical clientele, has worked behind the scenes for such artists as material mom Madonna, pop superstar Michael Jackson, R&B legend Aretha Franklin, the stylish rocker Pink, the platinum-selling trio TLC, along with several others. The list is very long.

And he's now facing the music in a different way. The producer was arrested at the Dubai Airport for allegedly possessing a banned drug. Austin was holding the illegal substance cocaine in his pocket. The Georgia native had his first hearing in Dubai in court last week, and he's scheduled to return on July 2.

Now, the country is tough on drug offenders and in the past, those convicted of drug possession were sentenced to several years in prison. Austin has been in Dubai since May 19th. The 34-year-old and father of four was on the shores of the Persian Gulf to attend supermodel Naomi Campbell's birthday party when he was arrested.

He won a Grammy for his work with TLC on the smash hit "Fan Mail," and you'll probably remember the popular musical film "Drumline" which starred Nick Cannon and Orlando Jones. Well, that story was loosely based on Austin's life. We'll keep you posted as we learn more about this case.

And tonight on "SHOWBIZ TONIGHT," the remarkable story on how Brandon Routh became Superman, and it could be the new "Superman" really is a religious savior. A.J. Hammer goes one-on-one with the star of "Superman Returns" on the most provocative entertainment news show on television. That's "SHOWBIZ TONIGHT" at 11:00 p.m. Eastern on CNN Headline Prime.

Back to you, Kyra.

PHILLIPS: All right, Sibila, thanks so much.

Well, he was the top dog, literally, on a top sitcom.

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UNIDENTIFIED FEMALE: You like it? Eddie.

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PHILLIPS: The Jack Russell terrier that played Eddie on the long-running hit "Frasier" has died. His real name was Moose, and his trainer tells "People" magazine he was 16.5 years old. Moose also starred in the movie, "My Dog Skip."

Well, is Harry Potter a marked man, wizard? J.K. Rowling, the series creator, says that major two characters will die in the seventh and final installment of the "Harry Potter" novels, and she's hinting that Harry might be one of them. Rowling says that she has known since 1990 how the series will end but, of course, she's not telling anyone. The fifth "Harry Potter" movie, meanwhile, is due out in July of next year.

Trapped on vacation. Some families are getting an extension on their stay in the Grand Canyon because of wildfires. We're going to get the update from the Park Service. The news keeps coming, we'll keep bringing it to you. More LIVE FROM next.

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PHILLIPS: Well, flooding still threatens much of the East Coast. One man outside Washington says that flash floods appeared to wash away everything in their path. Today, more rain keeping things miserable and dangerous. Roads have turned into raging rivers of muck as far as Albany, New York, and a Maryland woman was killed in an accident and that was blamed on wet roads. A foot of rain fell in some spots.

Meteorologist Bonnie Schneider has some new information on that storm, forming in the Atlantic. She's in our Weather Center. Hey, Bonnie.

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