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American Morning

Baghdad Crackdown; Marines Prejudged?; Controversial Donation

Aired June 14, 2006 - 07:30   ET

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

SOLEDAD O'BRIEN, CNN ANCHOR: Welcome back, everybody. Happening this morning.
Alberto, now a tropical depression. The downgraded storm, though, is still dumping plenty of rain over South Carolina right now. And that's leading to some fears of flooding there.

Southern Baptists could soon begin pulling their children out of public schools. The largest Protestant group unhappy over the school's handling of controversial subjects like intelligent design. A proposal being considered right now at their national convention includes a move to private schools or to home schooling.

A marathon surgery is about to begin for a set of conjoined twins in Los Angeles. Doctors say it could take 24 hours to successfully separate the 10-month-old twins. They're joined at the mid section. They share a large intestine.

Good morning, everybody. Welcome. I'm Soledad O'Brien.

MILES O'BRIEN, CNN ANCHOR: Good morning to you. I'm Miles O'Brien.

Today is the first day of a promised and highly touted security crack-down in Baghdad. They're calling it Operation Advancing Forward Together. But it has not stopped the violence or the anti-American sentiment from bubbling over on the streets. CNN's John Vause live now from Baghdad.

John, hello.

JOHN VAUSE, CNN CORRESPONDENT: Hello, Miles.

It's been fairly quiet here in Baghdad as this security operation gets underway. Mostly, it seems, the Iraqi forces are concentrating on checkpoints in and out of the capital, stopping vehicles, searching cars, that kind of thing. We've been told by the police they've seized a large number of weapons. There are precise numbers on that. But also katyusha rockets, three katyusha rockets. They're those Russian made rockets, have a range of about 20 kilometers and they're very accurate. And also, we're told by the police, so far they've defused two roadside bombs.

Despite all those checks, though, not enough to stop the violence here. Quite is always a relative term. In the northern part of Baghdad, a car exploded. According to police, the explosives were set off by remote control, killing at least two people. There was also a roadside bomb not far from that incident which targeted an Iraqi police patrol. In that case, though, no one was killed. That pretty much is all the incidents so far in Baghdad which, in Baghdad terms, is a fairly quiet day.

Miles.

MILES O'BRIEN: Well, first of all, let's talk about what the security crack-down turned out to be. It was claimed in advance to be 70,000 mostly Iraqi troops on the street. Have we been able to verify that?

VAUSE: Not yet, Miles, but let's put this into perspective. There is always a lot of Iraqi forces on the streets. What we seem to be learning from this is that they're going out to be in a very visible fashion. And what we've heard also from a number of officials within the government, this is just the first day. This is an open- ended operation. It's not a tactical change, it is a strategic change in the way they operate throughout the Baghdad area.

Now what we were told yesterday, to expect these sweeps through militia strong holds, to take on the Sunni insurgency in the neighborhoods that they control in Baghdad. Just because it hasn't happened in these first few hours, we are told, does not mean that it will not be happening. We just have to be patient. We have to wait and we have to watch as the Iraqi government conducts this operation over a period of days, over a period of weeks, not just hours.

Miles.

MILES O'BRIEN: And in the midst of all of this anti-American demonstrations. Tell us about that.

VAUSE: Yes, not everyone so happy to see the president here yesterday on that surprise visit. The Shiite cleric, the firebrand (ph) cleric, Muqtada al-Sadr, had been a thorn in the side of the U.S. led occupation here for quite some time. His followers took to the streets in Baghdad. About 2,000 of them chanting anti-American slogans, protesting the occupation, saying Iraq is for Iraqis and also saying no, no, America. That was a fairly big protest as far as protests go here. But certainly not an indication of the overall feeling here in Baghdad after the president's visit.

Miles.

MILES O'BRIEN: John Vause in Baghdad, thank you very much.

Soledad.

SOLEDAD O'BRIEN: The families of U.S. Marines suspected in the murder of an Iraqi civilian are angry at the way the investigation is being handled. They say their sons are being abandoned by the president and by the military too. CNN's Ted Rowlands has more for us from Oceanside, California, this morning.

(BEGIN VIDEOTAPE) TED ROWLANDS, CNN CORRESPONDENT, (voice over): Terry, who doesn't want his last name used, does want you to take a good look at his 21-year-old son Robert, a lance corporal in the Marine Corps. Terry says Robert, who one day plans to be an architect, joined the Marines after September 11th and was on his third tour in Iraq when he went from the battlefield to a military jail cell.

TERRY, FATHER OF ACCUSED MARINE: They're heroes. They deserve respect.

ROWLANDS: Robert is one of seven Marines and a Navy corpsman being held in solitary confinement, accused of murder in the killing of this 54-year-old Iraqi civilian in April. The Marine's families say the accusations simply don't make sense.

TERRY: Did they? Would they? Could they? I can't say. I can't say for sure that nobody cracked and did something wrong. What I am certain of is that if somebody did, nobody else would have gone with him because this is going to be a very random event. So to allege that somebody did something wrong and seven other guys covered it up, I don't believe that for a second.

ROWLANDS: John Jodka is another Marine whose family is speaking out. Jodka's father, also named John, says his son is the quintessential Marine who would never kill an innocent civilian. He says it's wrong to keep his son and the others in solitary confinement before any charges have been brought.

JOHN JODKA, FATHER OF ACCUSED MARINE: He's being treated like a convicted murder. He's not being treated like a potential murder. Potential murders are often out on bail and most often are not in solitary confinement.

ROWLANDS: Over the weekend a handful of people showed up outside the main gate at Camp Pendleton pledging support for the accused. On the base, a high ranging Marine commander spoke with CNN during a media event with the San Diego Charger football team. Colonel William Liston said he couldn't talk about the ongoing investigations, but he did say this about the Marines being held in solitary confinement.

COL WILLIAM LISTON, USMC: I'm absolutely confident that we will make sure that these kids are taken care of. That's the most important thing that a Marine officer can do is look after his Marines.

ROWLANDS: But the families say they're upset with the way they think the top brass of the military, and even the president, have abandoned the suspects by making statements like this, vowing to be tough on anyone found guilty.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: And those who violate a law, if they did, will be punished.

TERRY: The reaction is just so over the top. This kind of treatment of our guys. They don't deserve it. They're heroes. They're not criminals. ROWLANDS: According to the Marines, the eight service members in solitary confinement are there because of information gathered in the early stages of the investigation. It's an investigation that still continues. So far none of the eight have been charged with any crime.

Ted Rowlands, CNN, at Camp Pendleton in Oceanside, California.

(END VIDEOTAPE)

SOLEDAD O'BRIEN: It's 40 minutes past the hour. Let's check the weather with Chad. He's at the CNN Center.

Hey, Chad. Good morning. What are you looking at?

(WEATHER REPORT)

MILES O'BRIEN: Coming up, a dream come true for an identity thief. Your social security number, signature, even your bank account numbers all there for the taking on the Internet and posted by the government. You'll meet a woman trying to stop it.

SOLEDAD O'BRIEN: Also, NFL star Ben Roethlisberger was warned to wear a helmet before Monday's motorcycle wreck. Didn't listen. Should athletes by held to a higher standard as role models? We'll take a look at that.

Plus this.

(BEGIN VIDEO CLIP)

KATHLEEN FAHEY-HOSEY, SISTER OF ANNE MARIE FAHEY: What are they forgiving? Are they forgiving that my sister's in the Atlantic Ocean with a chain wrapped around her?

(END VIDEO CLIP)

SOLEDAD O'BRIEN: A business man is now under fire. He's accused of trying to buy forgiveness after a brutal murder. We'll explain the controversy coming up next on AMERICAN MORNING.

(COMMERCIAL BREAK)

SOLEDAD O'BRIEN: A Delaware community is up in arms over a contribution. A prominent family donated a million dollars each to two catholic schools. Some people say it's philanthropy at its very best. Others say it's blood money. AMERICAN MORNING's Alina Cho joins us to explain the controversy. And this is a big one.

Hey, Alina.

ALINA CHO, CNN CORRESPONDENT: It certainly is. Good morning, Soledad.

You know it has been said that the Capano family was to Delaware what the Kennedys were to Massachusetts. The Capanos built a name for themselves in the construction business. But when one of the brothers murdered his mistress a decade ago, everything changed. Some in the community now say a donation, even a big one, will not buy the Capano family forgiveness.

(BEGIN VIDEOTAPE)

CHO, (voice over): Louis Capano Jr. had the best catholic education money could buy. He went to elementary and middle school at St. Edmonds Academy, high school at Archmere Academy. Years later the successful business man wanted to give back, so he pledged a million dollars each to St. Edmonds and Archmere. New buildings will be named after his parents.

KATHLEEN FAHEY-HOSEY, SISTER OF ANNE MARIE FAHEY: It makes me sick.

CHO: Kathleen Fahey Hosey has reason to be mad. Ten years ago this month, Capano's oldest brother Tom murdered her 30-year-old sister, Anne Marie Fahey, and dumped her body in the Atlantic Ocean. Tom Capano, a prominent lawyer and married, was having an affair with Anne Marie, who worked for then Delaware Governor Tom Carper. When she tried to end it, Tom Capano killed her. But he never would have been convicted were it not for the testimony of two of his brothers, including Louis, who in exchange for probation, admitted lying and destroying evidence. Colm Connolly prosecuted Tom Capano for murder and sent him to prison for life. Connolly is also an Archmere alum.

COLM CONNOLLY, PROSECUTOR: I don't think it's appropriate for a school, especially a catholic school, to place it's stamp of approval and to hold up for honor and tribute that family.

CHO: The Capano donation has caused so much anger around Wilmington, Delaware, some of the students' parents have set up a website.

MARYBETH PHILLIPS, ARCHMERE PARENT: It's just sending the message that money talks and Jesus walks.

CHO: Louis Capano Jr. declined repeated requests to be interviewed. In a statement to CNN he said, "I cannot undo the harm caused by my brother's actions, but I can try to do positive things through charitable giving to enhance the lives of others. Making these gifts hopefully will also provide the Capano family something to be proud of today and in the future."

Both Archmere and St. Edmonds defend the gift. Michael Marinelli is St. Edmonds headmaster.

MICHAEL MARINELLI, HEADMASTER, ST. EDMONDS ACADEMY: Yes, well the gospel of Matthew, in the gospel of Matthew he quotes, that the sins of the father are not the sins of the son and, therefore, at some point there has to be a point of forgiveness.

CHO: The Faheys say the schools are not in a position to forgive.

FAHEY-HOSEY: To think that this family can just throw a million dollars at a school for forgiveness? What are they -- what are they forgiving? Are they forgiving that my sister's in the Atlantic Ocean with a chain wrapped around her? Is that forgiveness? Am I supposed to forgive them? Have they ever approached me for forgiveness? No, they have not.

(END VIDEOTAPE)

CHO: And yet there is no sign the schools will change their minds about this. The Capano name will be on display and the community, of course, will continue debating whether charity can ever earn a family forgiveness. Incidentally, Kathleen Fahey-Hosey's nephew, Brian, will be going to Archmere next year. The Student Life Center there will have the Capano name on it and he will likely have to walk by it or go inside it, Soledad, almost every day.

SOLEDAD O'BRIEN: It's so interesting to hear the rationale, the sons of the father are not the sins of the son. When really they're flipping it. I mean the sins of the son, not . . .

CHO: Exactly.

SOLEDAD O'BRIEN: Because it's named after the parents, right?

CHO: Exactly. But essentially the message is the same and that's what the schools are saying about the donation. They say it's time for forgiveness and this man was not . . .

SOLEDAD O'BRIEN: And it's a lot of money.

CHO: It is a lot of money.

SOLEDAD O'BRIEN: Has there been controversy before over naming rights basically (ph)?

CHO: There certainly has. Interestingly enough, you know, that student life center that will have the Capano name on it over at Archmere Academy, the high school, was originally to be named for U.S. Senator Joe Biden. He's an Archmere alum. He's from Delaware, of course.

SOLEDAD O'BRIEN: That's right. That's right.

CHO: But here's the problem. Biden supports abortion. The catholic church does not. The bishop got involved and said it's not right to honor Biden in this way and so the school . . .

SOLEDAD O'BRIEN: Maybe he should name it after his parents. There you go.

CHO: Perhaps.

SOLEDAD O'BRIEN: That sins of the father, not of the son. That might work to get them in. All right, Alina Cho.

CHO: Sure.

SOLEDAD O'BRIEN: That's a really interesting story, thanks.

CHO: Sure.

SOLEDAD O'BRIEN: Miles.

MILES O'BRIEN: Up next, Andy "Minding Your Business."

Andy.

SERWER: Miles, there's talk of raising the minimum wage, but will that lead to higher inflation and even layoffs? Well get to the bottom of that coming up.

Miles.

MILES O'BRIEN: Also ahead -- thank you, Andy -- anything anyone would need to steal your identity. All of it online and put there by who? The government. We'll introduce you to a woman who is trying to stop all of this ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

MILES O'BRIEN: The minimum wage, which is adjusted for inflation, I think at an all time low or something close to it. Andy Serwer's here to -- this is a surprise. I hadn't heard much debate about this in Congress. Suddenly there it is, a raise in the minimum wage.

SERWER: Yes, it was tacked on to a bill, Miles. The House Appropriations Committee voted yesterday to increase the minimum wage. It's on a health and education bill. Leaders, though, say they will strike the bill when it gets to the House floor. But still it was a surprise.

However, when you look at the numbers, boy, you can make an argument for increasing the minimum wage. Look here. It would go from $5.15 where it currently is to $7.25. That's a 41 percent increase. And it would be the first increase in a decade from 1997.

And this speaks to your point. Adjusted for inflation, the minimum wage is the lowest it's been in 50 years.

MILES O'BRIEN: Wow!

SERWER: You know, you could make the argument, if you're going to have a minimum wage, that it might as well keep up with inflation, otherwise what's the point. Businesses, of course, object to the minimum wage. Many of them do. They say, obviously, it will increase costs. That's true. They also say it will increase inflation because it means that they've got to start paying everyone more and that will lead to higher prices. That may be true.

And then very often they say it will lead to layoffs. In other words, if you're paying me and Miles $5.15 an hour and you raise us to $7 an hour, well you're probably going to have to lay Andy off. I never really thought that argument made a lot of sense because you're still going to need a business reporter, right, or you're still going to need three people to carry stuff around in the back. I mean it doesn't make sense to me that people get laid off when you're going to raise wages like that.

MILES O'BRIEN: Well, here's the thing. I think what -- looking at the real big picture here, what businesses forget is their employees are also customers. And if they have a little more money in their pocket, don't they ultimately help the greater good of business?

SERWER: Well, you've heard that about Wal-Mart. You know, the people at Wal-Mart don't get paid very much money. The only store they can afford to shop at is Wal-Mart. And, you know, it's an unvirtuous cycle I guess is what you could call it. But then that would go back to the inflation argument. Well, if you pay them more, they're going to be able to buy more and that will lead to higher prices.

You know, I think it all comes back to, what is the minimum wage all about anyway? I mean if it's the lowest it's been adjusted for inflation in 50 years, then why have it?

MILES O'BRIEN: Just dump it.

SERWER: In other words, either have it and do it right or don't do it at all. And I think eventually Congress is going to have to address this issue.

MILES O'BRIEN: All right. What's next?

SERWER: Coming up in the next half-hour, Miles, we're going to be talking about a company that gives away iPods to its employees.

MILES O'BRIEN: Oh, Time Warner? No? Not us. OK.

SERWER: That's all. Not going to say. No, not us.

MILES O'BRIEN: All right. We'll still pay attention nonetheless.

All right, Andy Serwer, see you in a bit.

SERWER: Thanks.

MILES O'BRIEN: Back with more in a moment. Stay with us.

(COMMERCIAL BREAK)

MILES O'BRIEN: What was meant for victims of Hurricane Katrina ended up paying for football tickets, strip clubs, and even a sex change operation. A billion dollar scandal at FEMA to tell you about.

A videotape beating posted on the Internet for everything to see and now the bragging on myspace leads to some serious charges.

SOLEDAD O'BRIEN: Identity thieves have it easier than you may have thought and the government's helping them out. Many state and local agencies are posting personal information about you and you don't know about it.

And immigration underground. Smug making big money by getting underground and dirty to slip past border security. We'll show you the pictures.

MILES O'BRIEN: And athletes as role models. A football star rides without a helmet, gets in an accident. We'll ask the question, do they have a greater responsibility to the people who emulate them? That's ahead on AMERICAN MORNING.

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