♪ >> okay. okay. you win. are we agreed? >> i have a coin if you want to flip it. governor, you lose. >> thank you you. >> the huntsmans could be the most musically talented first family we have seen. >> give us a chance. >> thank you for sharing your skills. >> thank you for having me on. i'm susan hendricks. don lemon is off tonight. you are in the cnn newsroom.

we begin with breaking news in drought-stricken texas where strong winds from tropical storm lee are kicking up several major wildfires. you see them here. this is south of austin, texas. crews are scrambling to knock down flames as soon as they pop up. 1,000 homes are at risk, in the line of fire. the situation has been getting worse. fire officials can't tell us how many evacuations they have or any damage assessments as of yet. we'll have more ahead on the fires including a live report from the scene and also a man who may lose his home to this fire. first we want to bring you up to date on the enormous amounts of rain tropical storm lee is dumping on louisiana and also mississippi. this was tropical storm lee tearing through the gulf this weekend. this is an oil rig and the workers there, you see them leaning into the wind holding on

for dear life just to find out how fast the wind is blowing. they found out fast. on land, lee has been a flood maker. parts of louisiana have gotten a foot of rain or more. the mayor of new orleans warns the city will be dealing with the storm for at least one more day. want to bring in jacqui jeras in the cnn weather center. a lot going on. we have been hearing that it's a rain machine. in texas, some fires and a tornado as well. >> yeah. a lot going on with the storm. let's start with the threat of fire. this has been breaking throughout the day. we look at lee on radar and say there is so much moisture. it's moving so slow. we have a strong intense area of high pressure in the midwest pummelling into the plains states. with the extreme conditions, the drought that's ongoing we have had at least six wildfires which have broken out within a couple of hours this afternoon they have gotten out of control because the winds are so strong here.

we are talking about sustained winds. we have a couple of locators. sustained winds of 17 miles per hour near austin, but the gusts have been going up to 40 miles per hour. what you're seeing here on the doppler radar is actually smoke and ash that's being picked up on doppler radar moving across i-10. i understand it's been closed this evening in both directions. so the winds will continue to fuel these. this isn't going away any time soon. we expect the winds to stick around through the day tomorrow. it will finally start to slacken off a little bit into tuesday and wednesday. just a very dangerous situation evolving across texas. there are reports outside the dallas area. these pictures are from the bass drop county fire. a fire warning is in effect there. mandatory evacuations for the lake bass subdivision there.

the winds are causing it to billow and advance quickly. when you have winds like that we worry about spot fires. they will take embers and pieces from the trees and blow them way ahead of the main line. that makes it difficult to fight them with winds that strong. >> just when firefighters think they may have something under control the wind can switch direction and spread the fire that fast. also reports of tornadoes in upstate new york? >> yeah. we have also had a lot of tornado reports back into parts of mississippi. that's been ongoing for the last couple of hours. you can see here one warning and multiple flood warnings to go with it. this is from tropical storm lee. if you haven't been paying attention it's weakened a lot. 40 miles per hour. that's a maximum sustained winds. we are expecting this to move to

the north and east. inland flooding will be the big concern in the upcoming days. this will be spreading across the deep south into the tennessee valley throughout the appalachians. widespread averages will be four to eight inches. we are concerned with this in the mountains that we have a threat of mud slides here. of course a lot of major cities are being affected. look at atlanta. three to five inches between tonight and tuesday morning. this will head into the northeast as a cold front moves through. it's the cold front that produced a tornado in upstate new york this evening. we have video of it. we'll bring it to you and talk about what the whole thing will do to your travel coming up later. i'm hearing that we have the pictures in now. this is just in cranesville. the tornado was caught on camera moving through there. there was quite a bit of damage, trees down and power outages. we don't know if anyone was injured in the storm yet. we have crews on the scene and are talking with affiliates.

we'll bring you information as we get it. look at the debris in the air. amazing pictures out of new york tonight. >> that's massive. you see the enormity in the picture. of we hope the person taking the pictures for us is okay. thank you so much on that. we'll take you live to texas for more on the fires as well, the explosive wildfires. first the latest from the gulf coast where tropical storm lee is dropping a large amount of rain. cnn meteorologist reynolds wolf has been there for some time near the eastern edge of the warning zone in gulf shores, alabama. how is it now, reynolds? >> reporter: looks good for the time being. really for the last, say, hour, 90 minutes we have had blasts of heavy rainfall but for the time being we are seeing something we haven't seen for a while and that's the moon.

half moon above the gulf of mexico. the winds are strong. feels like a drier breeze at this point. however it is still expected to be strong. still pushing water against the coast. tomorrow people will try to make the most of the holiday weekend and will be out here with pretty dangerous conditions. lots of threat of rip current. if you are headed to the coast, please be careful. people are still fairly frustrated. anyone going farther north may run into the chance of rain. still a very, very real potential of major flooding in parts of louisiana, back to mississippi, alabama and of course in parts of florida as well. it will be interesting to see what happens over the next 12 to 24 to 36 hours where the bulk of this heads up. a lot of models have it headed in different directions. as it makes it to alabama, georgia, tennessee, perhaps the carolinas we could see massive flooding from this. it's far from over. we talked about the rainfall. roughly seven inches in 30 hours or so. they still might get some here

but the system looks to be slowly on the move for some people. the back side of it possibly heavy rainfall to parts of louisiana, mississippi and alabama tomorrow. especially louisiana and mississippi. that's the latest from the beach. let's send it to you in studio. >> thanks to reynolds wolf and photo journalist tim wall out there. they have been there several hours. now to texas where the massive wildfires are a disaster for the state. they are a personal tragedy for those who lost their homes to fast-moving fires which scorched three and a half million acres. put your mind around that. julian ochoa joins us from texas with his story. i know this is a stressful time. thanks for joining us. what do you know and how fast are fires moving there? >> right now, i don't know anything. they evacuated us. i can see the fire and the smoke. as of now i don't know if our home was burned to the ground, if it's still standing or what's

going on. >> is your family safe with you? >> i can't see my home it is on top of the hill. i can see where the smoke is coming from. i am standing in the middle of the parking lot. bass drop. when did you realize this is something serious and i have to leave? >> we were just enjoying the day. it was nice out. we were all outside by the pool and we saw a cloud of smoke. we were debating if it was a storm cloud or a fire. after a few minutes we heard a ton of sirens. at that point we knew something was up. we were waiting to see what would happen. whether we would be evacuated or not. >> it's been a tough fire season

in texas there. has it been tough in the county where you are? is this your first time facing a fire of this magnitude? >> i have never dealt with anything like this. i have heard of it. but nothing like this. this is a huge fire. all i can see is smoke covering bastrop. it's insane. >> we have pictures you sent. looking at that massive amount of smoke, what's it like driving through there. what is it like to be in that? >> honestly, i cannot describe it. i didn't anticipate that when we came onto the highway. the fire was right on us. we pulled off and i was just amazed by how much smoke and how bad it smelled and the heat it gave off.

>> who's around you? you say you're in the middle of a parking lot. with that fire, the pictures you sent us engulfing that area, are people just wandering around? >> there are places taking people in, helping people out who have been evacuated and lots of people like myself that are just posted up in parking lots with friends and family. >> you sound pretty calm. are you fearful of what the next step is, what will happen next and to your home? >> i have no idea. i sound calm now because we have been dealing with this all day. it started earlier in the day. when it first happened i was very panicked and frightened. now i just hope our home is still there and everyone's okay. i know there's been tons of houses burned down. my friends have called, told me they lost their houses. i just hope ours is still standing. >> i bet this puts things into perspective for you. thank you very much for calling in and sending the pictures.

please stay safe for us and let us know what happens next in terms of your home and loved ones as well. julian, thank you. next, a cnn exclusive interview with one of moammar gadhafi's sons who expressed his feelings about time running out in libya. and president obama lays out his job growth plan this week. what does he need to say, if anything? will it be enough? more on car insurance.

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been showing you. no end in sight to a brutal year of drought and fire there. new fires started tonight. strong winds are whipping up blazes threaten 1,000 homes. kxan's reagan hakleman joins us. i got off the phone with a man named julian. he doesn't know if he lost his home or not. he's in bastrop county. are you in that vicinity or is this a different fire? >> this is a different fire. we are probably an hour west of where that fire is happening. it's been a busy day in texas for firefighters. numerous fires they are battling. the one where i am is getting a little bit under control. it's in an up scale neighborhood 20 minutes away from austin.

luckily it's right next to one of the larger lakes out here. that's allowed firefighters using helicopters to go over there, get water out of the lake and dump it on this fire. i would say probably for the last three or four hours thousands and thousands of people were told to evacuate the neighborhood. they have been sitting in traffic the entire time. they finally started to clear things up 15 minutes ago. the fire you are talking about is in bastrop county which is east of the austin area. there is a large training fort out there, an army fort out there. it's not a very populated area. there are no big cities over there. we are told that fire was thousands of acres. that's one of the big things you mentioned that the caller who didn't know if his house was there. a lot of people were told to pack up as much stuff as they could as quickly as they could and to get out of there. we have seen pictures of homes

engulfed in flames. you can barely make out a home there. i'm a quarter mile away from the fire and we could see flames over the trees. it's in a little bit of a valley. as it started to get dark the sky was lit up from the fire. now things are getting a little bit under control. i know one of the helicopters is right behind me. it is refuelling. i believe they will put some water on this. there was a fire up north from austin, maybe north of there. that one had 200 homes evacuated. luckily none of the homes were destroyed by the fire. it burned up empty structures and that was it. definitely a lot of people in central texas now worried about all the dry. we haven't had rain since may if not before. the temperatures have been hundred plus all the time out

here this summer. we had over 70 days of that. it's dry and people don't have any word on how any of the fires started yet. today we have wind gusts close to 40 miles per hour which were fanning the flames out here. >> that's the recipe. >> things are calming down. >> triple digit temperatures and fast rains. as you know, how fast these massive fires can spread. stay safe out there. we appreciate the report. thank you very much. want to take you to libya where rebel forces are surrounding one of moammar gadhafi's last strongholds, the city of bani walid. the rebels extended the guideline for surrender to next saturday but they could storm bani walid any moment. after negotiations for a cease fire fell apart. a cnn exclusive. as rebels close in the whereabouts of moammar gadhafi are unknown, but one of his sons, saad gadhafi, is speaking to cnn.

he's considered moderate. he called nic robertson to talk about the family's dwindling options. nic describes the conversation. >> i asked him specifically where his father was, where his brother saif al islam al gadhafi, the heir apparent, where they were. he said he hasn't seen them in two months. i asked where he was. he said he was outside bani walid, he was moving around, hadn't watched television much. he was relatively safe but in a dangerous situation. he said he's been negotiating with national transitional council, rebel military commanders.

they have confirmed it. he's been negotiating to try to get a cease-fire for bani walid, but on thursday when his brother saif gadhafi, gave what he called an aggressive speech on television urging his supporters to keep fighting, saadi gadhafi told me at that point national transition council, the rebels said the cease-fire talks are off if your brother is going to talk like that. now according to saadi gadhafi he believes there is no point in negotiations, that the national transition council is amassing troops to move into bani walid. this is significant. he said he clearly has differences with his father and brother saif al islam. he said he's neutral, is neither in the rebel camp nor his father's camp and is trying to negotiate a cease-fire. the divisions are significant. until now gadhafi's family have been the power brokers, the main people that have run the country. they have always stuck together. now the cohesion is falling

apart. >> our thanks to nic robertson for that exclusive report speaking to moammar gadhafi's son. president obama tours the devastation in new jersey caused by the remnants of hurricane irene. the report right after the break. stay close. and economic growth. north america actually has one of the largest oil reserves in the world. a large part of that is oil sands. this resource has the ability to create hundreds of thousands of jobs. at our kearl project in canada, we'll be able to produce these oil sands with the same emissions as many other oils and that's a huge breakthrough. that's good for our country's energy security and our economy. that's good for [ bedistracted driving.security ♪ [ disco ] it accounts for 25% of car crashes. and it's why the best agents help safe drivers get a lower rate. - exactly. - oh! [ announcer ] we are insurance. ♪ we are farmers bum-pa-dum, bum-bum-bum-bum ♪

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president obama today got a firsthand look at the damage caused by last weekend's massive storm. hurricane irene. he toured flood-damaged areas of northern new jersey where irene's torrential rains caused the posaic river to overflow. susan candiotti was there. >> there were cheers for the president as he visited wayne and patterson, towns ravaged by hurricane irene.

hugs and heartache as the president in his role as comforter in chief heard from residents who lost their homes and businesses due to record floods here in new jersey. he promised federal help to get people and their towns back on their feet. >> the main message that i have for the residents not only of new jersey but all those communities affected by flooding, by the destruction that occurred as a consequence of hurricane irene is that the entire country is behind you. we are going to make sure we provide all the resources that are necessary in order to help these communities rebuild. >> across the region including vermont, new jersey and new york, thousands of people are still unable to return to their homes more than a week after the storm. but there are signs of progress. this bridge was still closed during the president's visit. it's now re-opened. we talked with one of the workers who made it happen.

>> took a good look around, seen the damage that was done. said he will support us financially and try to help the best way he can. >> though the river has returned to its banks, no one is under the illusion that the cleanup won't take months and in places like hard-hit patterson, new jersey, it could take even longer. susan? >> president obama saying we will not forget about you, even when the cameras go away. thanks to susan candiotti for the report. irene is blamed for at least 43 deaths and total losses from the storm could reach $6 billion turning to politics, mitt romney is looking for new friends in the tea party, you could say. until recently he hasn't spent a lot of time courting the big government activists. tonight, a different story. he spoke at a tea party rally in con ford, new hampshire. he played up his business background and said he is the

candidate to unseat president obama and solve the nation's economic problems. >> we have zero confidence, zero faith in a president who creato. that's in my wheelhouse. i will get america working again. >> south carolina's jim demint isa -- is a powerhouse was on "state of the union" making his feelings known about the upcoming jobs speech to congress on thursday. >> i don't think those things will create jobs, candy. what the president appears to be doing, and i'm so tired of his speeches, it will be hard to watch. >> a lot of people feel the same way. whether senator demint is watching or not, president obama will address both houses of congress and the american people thursday evening offering his proposals to get america back to work. want to bring in cnn political anchor for new york one, errol lewis. great to see you.

we know the president has his job cut out for him thursday night when he's talking about jobs, he will talk specifically about job training and infrastructure spending. no big surprises there. will he add any republican proposals to his speech? what do you think? >> oh, you can almost count on that. the fact that mitt romney will unveil his jobs proposal tuesday will give the white house a good 48 hours to steal any idea they think might get traction. we have seen it before. bill clinton did it all the time. it's not like you could copy right a good idea. this president in particular has often taken ideas from his political opponents and tried to make them his own. that puts them in the awkward position as republicans have been of opposing a payroll tax cut the president has been pushing for. he will use it to good political advantage, one can assume. we can assume also that he'll put things in, the white house is already signalling that won't require help from the republicans.

won't require an act of congress. that will be the most interesting array of things that the white house can and will do with or without help from the republicans. >> you heard senator demint saying i'm so sick of his speeches. it will be tough to watch. there is no doubt that president obama knows how to deliver a speech. let's look at the poll numbers. they are not good. no jobs, zero added in august. 34% approve of president obama's handling of the economy. 65 do not. he not only needs to revive the economy. he needs to revive his presidency. do you think he'll do it? maybe thursday night. >> they are one in the same thing. the overall approval numbers

for the president are around 40%. at this point in his first term bill clinton was around 46%. yes, there is time for the president to turn things around. he'll have to get things going for sure. it won't be one speech. it will be the actual policies and job numbers. new jobs include or failed to account for 46,000 striking workers in the new york area. when you are on strike you are not counted as employed. that's a glitch. would 46,000 jobs be better than none? sure. is it enough to get the economy going? obviously not. the president has to provide real stimulus. >> good point. just a minute left. it's been a whacky weekend. i want your take on this. rick perry, new front runner. mitt romney hanging with the tea party express. sarah palin, is she or isn't she? your comment? 60 seconds. go ahead. >> i tell you, i happened to

watch sarah palin at the iowa tea party rally on c-span. c-span lets the cameras run. even after the thing was over and this fascinated me. for a good 40 minutes or so after she was signing anything the crowd wanted to give her. books, programs, all kinds of stuff. there was an easy banter. it was the kind of star performance i used to see with barack obama, hillary clinton in 2008. she looked for all the world like somebody who's running for president. the fact that she'll take the road show to new hampshire next. until she says that she's out i assume there is a good chance she's in. >> or she could take it to the end, decide she's not running and back someone else. write a new book. >> in this process they have changed the rules for the republican nomination. if you come in second in almost every contest, you can go district by district and keep picking up delegates. you can come into the convention and stage a big floor fight. something democrats used to do a

lot. republicans tended not to. if there was anybody who maybe would want to do that it could be a sarah palin. >> when she makes the call i want to talk to you again. great talking to you. >> you got it. >> have a good labor day, thanks. program reminder. president obama lays out the job growth plans thursday night as i talked about before a joint session of congress. cnn's special live coverage begins at 6:00 eastern followed by the president's address at 7:00. tropical storm lee continues to hover over the gulf coast states dumping rain, threatening flooding. if something is simply the color of gold, is it really worth more? we don't think so. chase sapphire preferred is a card of a different color. unlike others, you get twice the points on travel, and twice the points on dining, and no foreign transaction fees. call now or apply at chasesapphire.com/preferred.

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to learn more. checking the headlines, tropical storm lee is expected to bring a lot of rain to the eastern part of the country. the storm has ump dumped a foot of water in louisiana and mississippi. the system is now expected to merge with the cold front and bring cooler, wetter weather to much of the u.s. over the next few days. lee offered no relief to texas firefighters. they need it. look at this. strong winds instead are fuelling wildfires, scorching the landscape in texas. the largest has burned 14,000 acres and threatens 1,000 homes. boy, does it move fast. a record three and a half million acres have burned so far since last november. this is the worst fire season texas has ever seen. iran is claiming a historic achievement in nuclear energy.

iran was the first middle eastern country to produce nuclear power from a plant. the reactor is expected to supply two and a half percent of the power needs. in italy the sister of the woman american amanda knox was convicted of killing is speaking out. stephanie is afraid her sister is being forgotten. final arguments on the appeal are set for monday. knox was convicted of killing her roommate in 2007 and sentenced to 26 years in prison. new dna evidence may call her conviction into question. check this out from the grand prix race in baltimore. >> just minutes into the morning look at this. >> wow. look at that. here you will see it again. goes right over the other car.

from that angle you don't want to experience this. fortunately neither driver was hurt. i'm amazed. it looks like the worst accident you could have. people walk away from it. indy car driver will power eventually took the checkered flag. the course was laid out on city streets that normally see thousands of city drivers and commuters. no one was injured in the crash. a man has been found dead in the player antonio smith. tonight police are investigating the circumstances. he's a defensive end for the houston texans. he threw a party at home on saturday night. hours later the body of a 37-year-old man was found at the bottom of the pool at the home. police say the man was a family friend and they do not suspect foul play. toxicology testing will be done to see the cause of death. north of los angeles a small plane crash ignited this fire today. it burned 500 acres so far.

one person was killed in that. a home was destroyed by the fire in the aftermath. 30 other structures are leading authorities to have people evacuate. as many as 300 firefighters are fighting the fire. a tornado touches down in upstate new york. we'll tell you how this -- look how massive it is. take a look. also, we'll have much more on the travel forecast for monday. may not be good. jill knows that, too -- so she uses crest pro-health clinical gum protection toothpaste. it helps eliminate plaque at the gum line, helping prevent gingivitis. it's even clinically proven to help reverse it in just 4 weeks. and it protects these other areas dentists check most. crest pro-health clinical gum protection. because healthy smiles are built on healthy gums. life opens up when you do. a network of possibilities... ♪

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tropical storm lee has been downgraded to a tropical depression now. what it lacks in strong winds it makes up for in heavy rain. look at this. you don't want water over the levee. that could cause it to fail. there is a voluntary evacuation orders as they rush to patch it. in new orleans, the giant weather system dumped up to a foot of rain. mayor mitch landrieu says the pumps are all working but the city cannot breathe easy yet in the big easy. lee is likely to cause headaches as it heads for the northeast. jacqui jeras joins us now. labor day could be a washout for a lot of people. you have been busy following fires, tornadoes.

>> you basically have to live out west if you are looking for a nice holiday weekend. it is not good along the east coast. lee is a depression now. the winds are weaker. it doesn't really change anything. this is an inland flood maker. that continues to push to the north and east. it picked up forward speed. it will be hovering across the deep south and a lot of roadways will be flooded. we also have the tornado threat so make sure you have your noaa weather radio on tonight. it's dark outside. you can't see. we have had a little bit of damage in mississippi. we have had damage from the cold front coming from tornadoes. look at the video we got in. this is incredible. this is in upstate new york. it's in a small town called cranesville. the tornado crossed the new york thruway and caused quite a bit of damage. trees down, power lines out. some people were possibly

trapped but we don't know if they have been injured. we'll continue to follow the story as the severe weather moves across for tonight. we still do have a severe thunderstorm watch. looks like it did just expire at the top of the hour. we'll see strong storms move in. we could see flooding so keep i mind. travel delays have been extensive today. having departure delays over an hour in newark and philadelphia with delays around 25 minutes. dallas and houston because of the strong winds. it will be white knuckling on the roads. the wind is from the north. you will feel it on the roadways. impacts on i-10, 20 and 45. because of the fires ongoing.

delayed expected in philadelphia, new orleans, heavy rain, coastal flooding and downpours in the morning because of lee. number two is atlanta, the heavy rain, the busiest airport in the world will be trouble in the afternoon. new york metro, it's been a problem there. today it was horrible last weekend. unfortunately tomorrow we don't think looks good either. >> when you say white knuckling it, i would extend my trip a day. >> not a bad idea. >> appreciate it. thank you. >> mm-hmm. >> now to the big stories and the week ahead. from the white house to wall street. our correspondents tell you what you need to know. we begin with the president's plans for the week. >> i'm brianna keilar at the white house. following disappointing jobs numbers last week president obama is set to unveil his plan thursday night, 7:00 p.m. eastern. he'll do it in an address to a

joint session of congress. the house of representatives and the senate. it will be a big event and it's set to be a pivotal moment in the obama presidency. >> i'm kate bolduan in washington. after a month-long recess, congress returns after recess and hits the ground running. the focus, jobs. after a brief spat over date and time the house and senate will welcome president obama to the much-anticipated jobs speech. also house republicans will be pushing their own jobs agenda that focuses in large part on repealing environmental and labor regulations they believe hinder job growth. and this week we expect the super committee to begin their work. the group formed by the debt ceiling agreement is tasked with finding more than a trillion dollars in debt savings, a big job and not a lot of time to figure it out. >> i'm poppy harlow in new york. markets are closed on monday for the labor day holiday. when trading resumes on tuesday investors will get a key reading on the service sector.

that accounts for the largest part of the labor market. the on wednesday, a look at the fed's assessment of the economic health of key regions across the united states. weekly jobless claims come out on thursday. those will be closely watched as they could reflect the impact of hurricane irene. we'll track it all for you on cnn money. >> new chilling video of 9/11 surfaces ten years after the attack. this was taken by a resident near shanksville, pennsylvania. he'll narrate what he's seen next.

welcome back. new video to cnn from 9/11. just surfacing now ten years after the fact. it was taken moments after united airlines flight 93 crashed into a field of pennsylvania. you will hear the voice of a man calmly narrating what he thinks he's seeing. that man is now deceased and his family wishes to remain anonymous. watch and listen. >> the remains of an airplane crash over on lamertsville road, probably had a terrorist bomb on board. it blew up. i don't know anything more than that. that's what i heard on the scanner. i saw the smoke come up and the explosion shook the house clear over here. we are, what, 15 miles from there and it shook the heck out

of the house. i don't know what else is happening. they ran one into the pentagon and into the world trade center. we're watching it on tv. and this one happened. >> it has been said that because of the passengers on that flight the plane did not hit its intended target. it may have been the capitol or the white house. you may remember todd boehmer was on that plane. his last words "let's roll" meaning toward the cockpit. this is believed to be the first known video that shows the smoke from the crash flight 93. cnn will bring you special 9/11 coverage beginning next sunday morning, 8:30 eastern. anderson cooper, candy crowley are among the many people who will help us remember the events of the day and honor the thousands lost. join us for "9/11 ten years later" next sunday. the maker of a classic

american guitar, the gibson, is under federal investigation. it's all about the wood used to make the sound. and even the first lady is involved. we'll tell you how. dea ♪ where do you want to go? just drive. [ engine revs, tires screech ] mom? ♪ [ vet ] your turn max. [ cat ] inside and out. and i'm not the only one who thinks so...right doc? [ female announcer ] vets agree, a healthy check up starts inside. our breakthrough iams premium protection formula is developed with vets... ...with cutting edge ingredients for the lifelong health of your pet. [ cat ] what a surprise... straight as again!

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gibson has been an internationally recognized name in guitars for more than 100 years. used by musicians from b.b. king

to u2 but now the company is under the scrutiny of federal agents. there are allegations involving smuggling. >> reporter: it's a case of a classic made in america product at odds with uncle sam over how u.s. law is enforced. ♪ >> reporter: he makes guitars that make america seem cool but the ceo is ordered to change his tune. it's ironic that you're playing the blues now. >> i've got the blues. >> reporter: in late august armed agents raided his tennessee factories for the second time in two years alleging the illegal import of rare protected wood. in this case, ebony and rosewood from india. an affidavit filed by the u.s. fish and wildlife service says gibson falsely labeled it to make it sound legal.

suspiciously omitted the company's name. so far no charges have been filed. it almost sounds like this company was engaged in smuggling raw materials into the country. >> well, we were not engaged in smuggling. we have been buying fingerboard stock on a regular basis from india for 17 years. >> reporter: on the neck of a guitar the tropical hardwood is prized for the look and durability but it is subject to the lacy act aimed at fighting black market trade and protected animal parts and plants and anything made from them. but the material that came in the box from india looked like this? >> very similar. >> reporter: he says the fingerboards gibson imported from india were confiscated by the government as illegal wood. >> the law says if a guitar or an instrument of any kind crosses the border, you have to know the species of wood that every component is made of and

where it came from. >> reporter: if this is true could hundreds of international stars like paul mccartney and b.b. king risk seeing their gibsons confiscated at the border? >> michelle obama gave a gibson guitar to the wife of the prime minister of france. just a year ago. >> reporter: the first lady may have broken the law? >> uh, yes. >> reporter: the lacy act gave federal agents broad authority to pursue smugglers. but if you own a gibson, don't worry. when we asked the u.s. fish and wildlife service for clarification it released a brief statement. we target corporations and individuals who are removing protected species from the wild and making a profit by trafficking in them. right now, in spite of his strong claim of innocence, gibson is a target. >> nightmare. it's a nightmare.

>> reporter: it took almost a week before gibson got back into full operation, but the damage had been done. just the shut-down of one day with the materials that were taken cost the company over $1 million. and now the maker of the guitars that have commanded the spotlight for over a hundred years has no choice but to play on and wait for its day in court. >> no word from u.s. fish and wildlife service, department of interior or the department of justice about when or if charges might be filed. back to you. >> all right. our thanks to david mattingly for the report. ahead an update on tropical depression lee's flooding threat to the gulf coast states. kwlr

checking the headlines now, tropical storm lee, a tropical depression is spoiling a lot of labor day holiday plans. the giant weather system has dumped a foot of rain on new orleans and surrounding areas. again, it has been downgraded. that's good news, to a tropical depression. mayor mitch landrieu says despite some of the flooding all 24 of the storm pumps in the city are working. he warned residents it will be at least another day before they can breathe easy in the big easy. a scary moment for rafael nadal in new york. he's in pain.