cabin in san bernardino county, the scene of a ferocious shoot-out yesterday between christopher dorner and sheriffs deputies. the remains are believed to be those of dorner. his firing by the l.a. pd allegedly sent him on a killing spree that began 10 days ago and left four people dead. he was targeting police officers and their families. when the manhunt came to a sudden, violent end, correspondent carter evans was there. >> reporter: we were on the side of road when we decided to follow this unmarked police truck less than a mile away, we came to a dead stop right in the middle of a firefight. >> i see a lot of these authorities moving to take cover themselves. ( gunfire ) the man believed to be christopher dorner was cornered in this cabin. he was shooting at police with a high-powered sniper rifle.

>> guys down! >> reporter: police scanner made it clear-- two sheriff's deputies had been shot. >> officer down, officer down! >> reporter: deputies couldn't 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 shoot-out was the climaxave manhunt that involved every law enforcement agency in southern california. the big bear mountain resort became the focus after dorner's burned out truck was found nearby. sources tell us that weapons cold-weather 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 don't 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 four-hour 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 they've got the right man even though there's 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, that's a good question scott, and it's 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. 34-year-old riverside police officer michael crain was ambushed last thursday. he leaves behind a wife a 10-year-old son, and a four-year-old daughter. the shoot-out 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 part-time 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 high-wage,

high-tech 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 haven't grown since july. >> i move out this way to go back to school. >> reporter: eight miles from where the president spoke today we found 27-year-old curt fullmer. he's 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, you're 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 wouldn't 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 that's 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 here's anthony mason. >> reporter: atica fay joey's 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, i'm barely making ends meet as things stand right now. >> reporter: picca has 13 employees at his restaurant. >> i'm a business owner myself and it's 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 low-income 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 low-wage 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 middle-class 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 don't oppose your plans because i want to protect the rich. i oppose your plans because i want to protect my neighbors. hardworking, middle-class americans who don't 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 "i'm 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 15-year-old honor student who performed at mr. obama's inauguration but was shot and killed days later, just a mile from the obama's chicago home are a victim of gang violence. her parents were sitting with the first lady last night. >> hadiya's 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 they're happy to take a vote and defend their opposition to an assault weapons ban and to any limitations on high-capacity magazines, moves, they argue, would infringe on people's 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 we're told they'd 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.

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air travelers. >> reporter: it's the third airline megamerger in five years. the country's third largest, american airlines, will combine with number four, us airways. the result of outsize united, which merged with continental in 2010, and delta, which merged with northwest in 2008. rick seaney is founder of the air traveler advice web site farecompare.com. >> in airline mergers the people that benefit the most are wall street to be honest. consumers end up paying more for airline tickets in general. they have less convenience because typically during mergers, there's cutbacks in flights and schedules. >> reporter: after delta bought northwest the decreased competition sent ticket prices up more than 20% between detroit and atlanta. the united-continental deal resulted in 30% price increases between chicago's o'hare in houston and newark and san francisco. the biggest factor pushing

consolidation is the price of oil. fuel accounts for 33% of an airline's operating cost. that's 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 post-merger fares. he says the big airlines will have to compete with discount flyers like jetblue. the new airline will keep the american name. federal regulators are likely to approve the merger as long as they are assured some measure of competition will be preserved in the areas where the airlines are dominant. >> pelley: a cruise that many would like to forget is finally coming to an end. that story is ahead. ai how did i know? well, i didn't really.

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toilets. apparently, the cabins are so warm, the passengers have crowded on to the deck. there was a skier in the swiss alps today who was crowded by snow an avalanche. have a look at this. this is savar lilyquist staying just ahead of a wall of snow. he got a somersault worked in there as well. he landed on his skis, completed the run with the avalanche coming right behind him. man versus nature. and on this day man was just a little bit faster. the faithful packed into st. peter's to say farewell to a pope. noose next. n't you have any apps on your phone do you think i am, quicken loans? at quicken loans, we'll provide you with myql mobile. this amazingly useful app allows you to take pictures of your mortgage documents using an iphone

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make sure everyone's is ready with the know how we need for a new tomorrow. [ male announcer ] make sure america's ready. make sure you're ready. at devry.edu. ♪ ♪ >> pelley: we learned today that once pope benedict leaves office his new title will be bishop emeritus of rome. today, ash wednesday, benedict explained his decision to retire saying "i am no longer capable of carrying out peter's ministry with the strength needed." alan pizzey is in vatican city. ♪ ♪ ♪ >> reporter: flash photography is frownd upon in st. peter's basilica but it was a sin worth committing today as the faithful crowded in to get a glimpse of

the pope at his last public mass. benedict's frailty which played a part in his decision to resign, was evident. but so, too, was the faith and sense of duty which made him take a job he said he never wanted. he said the mass was a good opportunity to thank everyone and ask for a special remembrance in prayer. he used his homily to criticize recent in-fighting among priests at the vatican, saying the church's image had been hurt. the mood was bittersweet. tears wiped away discreetly. ( applause ) and a very unchurch-like standing ovation in the basilica where popes are both announced and buried. earlier in the day at his weekly audience benedict told a packed hole he understood the gravity of his decision and asked the faithful to pray for the future pope. those closest to benedict say they are sad he is going but respect his decision, according to senior vatican communications

adviser greg burke. >> this is really a courageous move because somebody who was considered such a traditionalist making a decision which goes against six centuries of tradition. >> reporter: benedict will leave vatican city by helicopter at 5:00 p.m. local time on february 28 for castel gandolfo, about 16 miles away. three hours later he will officially go from being the spiritual leader of 1.2 roman catholics to the first living former pope in more than 600 years. but until then, duty calls. alan pizzey, cbs news, vatican city. >> pelley: and that's the cbs evening news for tonight. for all of us at cbs news all around the world, good night. captioning sponsored by cbs

@ó t the "ncis" connection to the california man hunt's explosive end. >> "e.t." is on the set today. i'm nancy o'dell. >> i'm rob marciano. >> like other people, i've been obsessively glued to the television. >> they've got dorner cornered in a cabin. >> the minute by minuteman manhunt. >> will it be turned into a movie? beyonce up staged at her new york