Guys down Reporter Police scanner made it clear two sheriffs deputies had been shot. Officer down, officer down reporter deputies couldnt get to the wounded because the gunfire was so intense. They used smoke grenades to cover their rescue of the deputies. They were med ed evakd out but only one survived. We witnessed at least half a dozen heavy exchanges of fire. Police say the suspect had a sound suppresser on his rifle so they had difficulty figuring out where to direct their fire. Christopher dorner is holed up in a cabin about 100 yards behind our position right now. You can see authorities and the swat teams with their guns drawn, Armored Vehicles just down the road as they prepare to move in. The shootout was the climaxave manhunt that involved every Law Enforcement agency in southern california. The Big Bear Mountain resort became the focus after dorners burned out truck was found nearby. Sources tell us that weapons coldweather survival gear, and a gas mask were found inside the truck. Police went door to door forest rangers scoured the mountains. They now believe dorner was hiding in plain sight in this vacant condo overlooking the Police Command post. The final act of the drama began yesterday morning when two women arrived to clean the condo. They say dorner tied them up and stole their car. One was able to get free and call 911. Police spotted the stolen car 25 miles away but lost it. Authorities say dorner then ditched that car and cargeneticked a man. He had his gun aimed at me. And he said, i dont want to hurt you. Just get out and start walk up the road and take your dog. Reporter dorner crashed his truck soon after another police chase and gun fight. It appeared the cabin was his last stand. After nearly a fourhour standoff, police prepared for the final assault. Get the gas get the gas reporter the decision was meat to use a powerful form of tear gas and rammed house with an armored vehicle. Flames engulfed the cabin. The cause is unclear. Within minutes we heard a sj gunshot, then the sound of ammunition exploding inside the burning building. At least six more hours passed before police felt sufficiency safe enough to approach the ruins and look for a body. Scott, to give you an idea of how confident police are that theyve got the right man even though theres no positive i. D. From the corner on the body, all 400 lapd officers assigned to protect families on that revenge list have now gone back to regular duty. Pelley carter you mentioned that dorner apparently was holed up in that condo for a while overlooking the Police Command post. Any idea how long he was there . Reporter you know, thats a good question scott, and its certainly Something Police are going to want to get to the bottom of. They checked 600 cabins. Apparently that one was not on the list. It was directly across the street from the command post and apparently those people who were in there, they wanted police are checking now to see how long he was there and if dorner had any help. Pelley carter, thank you very much. Well thousands of Police Officers from all over california attended the funeral today for one of the officers dorner allegedly killed. 34yearold Riverside Police officer Michael Crain was ambushed last thursday. He leaves behind a wife a 10yearold son, and a fouryearold daughter. The shootout in california was raging as president obama drove to the capitol to talk about gun violence and about lifting the middle class. His state of the Union Address was dominated by jobs. 12 million americans are unemployed, and another 11 million are stuck with parttime work or have just given up looking. Republicans last night were skeptical, to say the least. So as Major Garrett tells us mr. Obama took his plan to the people. Reporter in North Carolina today, president obama toured linamar, a factory where 160 employees build commercial truck engines and axles. On this spot three years ago, volvo employed 228 workers before shutting down. 228 jobs to zero to 160. The recovery in miniature with manufacturing jobs one indicator of economic health. I believe we attract new jobs to america by investing in new source of energy and new infrastructure and the next generation of highwage, hightech american manufacturing. I believe in manufacturing. applause i think it makes our country stronger. Reporter the white house says linamar is part of a manufacturing revival. 500,000 new jobs in three years. True. But manufacturing jobs nationally havent grown since july. I move out this way to go back to school. Reporter eight miles from where the president spoke today we found 27yearold curt fullmer. Hes training to be a measurist at a local Community College after serving two tours with the army in iraq and afghanistan. Increasingly companies build factories near trained workers. Mr. Obama wants 1 billion to expand Manufacturing Research and training. Fullmer, who found training on his own learned this lesson go back to school for a trade that is needed. Exercise a little scregz discretion as to what is needed in your area before going back to school and i think if you do that, youre going to be fine. Reporter the factory president obama toured has plans to add 40 more jobs by the end of the year, still fewer than were there before but, scott, the traject reerk ever so slightly upward, can be found in many other parts of the country. Pelley major, thank you. So why is mr. Obama zeroed in on manufacturing . Well, have a look at what our Research Department put together for us today. This graph traction the loss of manufacturing jobs over the last 20 years. In 1998, there were nearly 18 million of these higher paying jobs. But we went off a cliff in 2001 and then came the great recession. By 2010 six Million Manufacturing jobs were gone. As you can see lately, it is picking up, but slowly. The president s biggest proposal last night for working americans is something that the government wouldnt have to pay for an increase in the minimum wage from 7. 25 an hour where it is now, to 9. 19 states, and the District Of Columbia have a minimum wage thats already higher than the federal rate but only one of them, washington state, pays 9 or more as the president seeks. Those who would have to pay for this had the reaction today that you might expect, and heres anthony mason. Reporter atica fay joeys Italian Restaurant in texas. Everything okay . It was perfect. Reporter owner joey picca is not okay with the president s proposal to increase the minimum wage. Right now, im barely making ends meet as things stand right now. Reporter picca has 13 employees at his restaurant. Im a Business Owner myself and its hard. Reporter five of them earn minimum wage. Picca says the higher costs could be crippling. I have actually a couple of choices. The two choices is close down. The other choice is increase prices. Reporter but even if the minimum wage is raised to 9, the income of a family of four with one worker would still be nearly 5,000 under the poverty line of 23,550. Although federal tax credits would ultimately bring the family slightly above that level. We need an economy where consumers can afford to spend. Reporter paul son studies wage trends for the National Employment law project. Isis therey evidence that economically raising the minimum wage is beneficial . There is. The Chicago Federal Reserve Bank modeled the intaskt a dollar minimum wage increase and found it resulted in very substantial boosts in Consumer Spending in lowincome communities. Reporter that 2011 study by the chicago fed found an overall increase in spending of 2800 by households with minimum wage workers. It works just look a tax cut for lowwage workers. It gives them more money in their pobs to spend at local businesses. Reporter if the federal minimum wage had kept pace with inflation, studies show it would now be 10. 56. The white house has a 9 minimum would only bring buying power back up to 1981 levels. Pelley anthony thanks very much. Well, that minimum wage idea do the got a cold reception among republicans last night. The republican response to the state of the Union Address was made by senator marco rubio of florida. The tax increases and the deficit spending you propose will hurt middleclass families. It will cost them their raises. It will cost them their benefits. It may even cost some of them their jobs. And it will hurt seniors because it does nothing to save medicare or social security. So mr. President i dont oppose your plans because i want to protect the rich. I oppose your plans because i want to protect my neighbors. Hardworking, middleclass americans who dont need us to come up with a plan to grow the government. They need a plan to grow the middle class. Pelley by the time senator rubio gave the republican response, he had already delivered his speech in spanish and then as he repeated the lines in english on national tv he got a little parched and reached for a bottle of water, which had been placed a little too far away. Today, on cbs this morning rubio said it had been a long day. The spanish speech had dried him out im just glad the water was nearby, he said. During the state of the Union Address the president brought the audience to its feet when he pointed out victims of gun violence who had been invited to hear the speech in the house chamber, including the parents of hadiya pendleton, the 15yearold honor student who performed at mr. Obamas inauguration but was shot and killed days later, just a mile from the obamas chicago home are a victim of gang violence. Her parents were sitting with the first lady last night. Hadiyas parents, nate andicallyo, are in this chamber tonight, along with more than two dozen americans whose lives have been torn apart by gun violence. They deserve a vote. applause they deserve a vote. They deserve a vote. Gabby giffords deserves a vote. The families of newtown deserve a vote. The families of aurora deserve a vote. The families of oak creek and tucson and blacksburg, and the countless other communities ripped open by gun violence they deserve a simple vote. applause pelley he is asking for a vote on three proposals background checks for all gun. S, a ban on assault weapons and a limit on how many rounds an ammunition magazine can mold our Congressional Correspondent nancy cordes has been talking to members today. And, nancy are those victims of gun violence going to get that vote . Reporter they will scott, although they are likely to dislike the outcome. We spoke to a number of republicans today who said theyre happy to take a vote and defend their opposition to an assault weapons ban and to any limitations on highcapacity magazines, moves, they argue, would infringe on peoples Second Amendment rights. Pelley but what are the prospects for background checks for all gun purchases . Reporter those prospects look better. There is a small group of democrats and republicans in the senate who are working on a plan that were told theyd like to unveil in the next few weeks. Aides say the plan includes two prongs one closing the gun show loophole that enables people to buy a gun at a gun show without going through a background check; and another that would strength Mental Health record reporting from the states to the federal background check system making it more difficult for people way history of Mental Illness to get a gun. Pelley nancy cordes at the capitol for us. Thank you, nancy. An Airline Merger is about to take off. Is it a good deal for you . Conditions are getting worse on a disabled cruise ship. And this this skier crazy or just good . Maybe both when the cbs evening news continues. [ Acoustic Guitar upbeat ] [ dog ] we found it together. On a walk, walk, walk. Love to walk. Yeah, we found that wonderful thing. And you smiled. And threw it. And i decided i would never, ever leave it anywhere. Because that wonderful bouncy, rollaround thing. Had made you play. And that. Had made you smile. [ announcer ] beneful. Play. Its good for you. Hey, its sara. Im going pro. Ive been using crest prohealth for a week. My dentist said it was gonna help transform my mouth. [ male announcer ] go pro. For a clean thats up to four times better try these crest prohealth products together. [ sara ] ive been using crest prohealth. So far. It feels different. [ male announcer ] crest prohealth protects not just some but all these areas dentists check most. 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Reporter after delta bought northwest the decreased competition sent ticket prices up more than 20 between detroit and atlanta. The unitedcontinental deal resulted in 30 price increases between chicagos ohare in houston and newark and san francisco. The biggest factor pushing consolidation is the price of oil. Fuel accounts for 33 of an airlines operating cost. Thats more than doubled over the past decade. Industry analyst darrell jempgins. The biggest changing point in the last decade and even more so than 9 11 was the price of jet fuel. That became so bad that everybody was looking at a kind of last man standing scenario. Reporter jenkins is more optimistic about other experts about postmerger fares. He says the big airlines will have to compete with discount flyers like jetblue. The new airline will keep the american name. 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