Were on the southern tip of manhattan, the area known as the battery, named for the battery of cannons erected here in the 17th century to defend the young city. But nothing could defend new york city from the wall of water that came crashing ashore in one of the biggest storms so far of the 21st century. Hurricane sandy filled the tunnels here with floodwaters unlike anything the city has seen in decades. The storm brought misery to 14 states from North Carolina to maine. At least 35 people in nine states have been killed. And more than seven million homes and businesses up and down the coast are without electricity tonight. Officials say it could be days, if not weeks, before all the power is restored. Close to one Million People have been evacuated. More than 18,000 are living in shelters. Downtown new york city, the Financial Capital of the world, was largely shut down for a second day with the power out and the streets flooded. Governor andrew cuomo called the scene frightening. The hudson river was coming over from the west, the east river was coming over from the east. Pelley subways became waterways. A boat wound up on railroad trks and the governor of new jersey couldnt believe his eyes. There were houses in the middle of route 35. Pelley first estimates of the damage are in the 20 billion range. One of the worst areas of wholesale destruction is the breezy point neighborhood of queens on long island. A fire broke out here. Flames blasted by Hurricane Force winds burned 80 to 100 homes to ashes. It is not known whether anyone was killed in the conflagration. President obama, who will see the damage in new jersey firsthand tomorrow, had a message today for those who lost so much. We are standing behind you and we are going to do everything we can to help you get back on your feet. Pelley we have a team of cbs news correspondents covering the aftermath of the hurricane. First, we will go to Elaine Quijano in new jersey, the state where the storm made landfall last night. Reporter scott, here in the town this town the problem was tidal surge. One resident said it was as if someone had turned on a giant faucet. There was no time to think and barely any time to escape. The rescue started at daybreak in this town, boat after boat filled with people who spent a terrifying night stranded in their homes with waters rising. This woman was in her basement apartment shortly after midnight. I was a sliding door and i was like, oh, my gosh. My bed was floating, i got a brand new sofa thats floating. Reporter the towns only fire house was destroyed. Teams from surrounding towns joined new Jersey National guard troops in the effort to save hundreds of people. Staff sergeant Katie Cataldo said it was tricky and dangerous work. We can only get so close to the homes and if we have to get out of a vehicle and assist in getting them up, we will. Reporter moonachie and neighboring little ferry were swamped by a tidal surge of the hackensack river. Both towns were washed over by more than five feet of water. This woman was in little ferry with her young daughter to help her aging parents. Within a matter of minutes i think where the basement got completely flooded theres an apartment down there thats completely destroyed and basically were just waiting for this rescue. Reporter thousands of people from both communities had to be bused to temporary shelters. Among them, christina. Hurricane sandy claimed her home her belongings and her car but give her perspective. Im safe, my dog is safe, my neighbors are safe. Houses and cars you can replace. Its really not whats important at all. Pelley long beach island, a barrier beach on the new jersey shore, was evacuated ahead of sandy. One Police Official said there todait could be days or weeks before residents are allowed back. Chip reid is about to show you why. Hes in somers point. Reporter from the air, long beach island, new jersey, appears to be crisscrossed by canals but, in fact, the storm surge brought ashore by sandy filled the streets with water. Many homes on the Barrier Island are partially submerged. Some knocked off their foundations. Whole fleets of boats have been swept from their moorings and deposited on what was once dry ground or left in crumpled heaps. Search and rescue crews spent the Daylight Hours looking for jersey shore residents who may have been stranded by the fierce storm. On another Barrier Island, some houses in the town of Seaside Heights are half buried in sand. One couple whose home was inundated with water clung to a tree until they were rescued by police. Nearby, a pier with an Amusement Park was destroyed when it was swamped by enormous waves. State Officials Say several of the states Barrier Island beaches have disappeared. The task of cleaning up here, they say, is a mammoth job thats just beginning. Barrier islands run along more than three quarters of new jerseys Atlantic Coast and, scott, officials here say they played an enormously Important Role in protecting the mainland from Hurricane Sandys first punch. Pelley let me show you where we are right now. We are less than a mile from the new york stock exchange, but have a look at this. This is normally a busy roadway and that is a tunnel down there. The sign says 128 of clearance, but it looks like about ten feet of that is underwater tonight. New york was a tale of two cities as the storm came in. Heres what manhattan usually looks like with its lights shining brightly. But last night Lower Manhattan south of 39th street where we are now was plunged into darkness after flooding caused an explosion at a conedison electrical substation. A quarter of a million homes and businesses lost power. Jim axelrod reports the trouble was just beginning. Reporter workers are now taking down the boards that were supposed to keep water out of subway stations and loading sandbags back on to the truck. Having done their best in a battle they could have never won. There was no way to prepare that would have kept the water out . No, no. No way. How are you going to stop water . Water does what it wants to do. Reporter seven tunnels linking manhattan to brooklyn and queens are flooded. The signals, switches and third rails are covered with sludge. M. T. A. Workman john oneil went down for a look in the south ferry station and reported back. Its probably up to the two poles from the top. Full to the top. Forget about it. Reporter even after the water has gone away, 6,200 subway cars must be inspected along with 600 miles of track and 468 subway stations. The m. T. A. Last night faced a disaster as devastating at it has ever faced. Reporter joe loda is chairman of the metropolitan transit authority. Sandy wreaked havoc on the entire transportation system, the subways, buses, metro north and the long island railroad. In every single borough of the city and every single county of the m. T. A. Region. Reporter utility workers are pumping water round the clock, water that engulfed cars and flooded underground power equipment. Nearly 250,000 customers are out of power in manhattan alone. No power means no traffic lights in Lower Manhattan and no lights means chaos at intersections. And no mass transit makes these the most soughtafter vehicle in new york. Youre the most popular guy in the city today, huh . Yes, sir Reporter City busses will resume partial service tonight, full service tomorrow and, to help get the city moving again, scott, those buses will operate free of charge both tonight and tomorrow. Pelley people in the new york area lucky enough to have power turned on their television this is morning and saw something amazing. A few miles to the east of us on the rockaway peninsula in queens an entire neighborhood was up in flames. Michelle miller is in breezy point. Reporter this is breezy point shortly after the inferno started at 11 00 p. M. Last night. Blocks of homes engulfed in flames. Firefighters hauled hoses through flooded streets. Nearly 200 firefighters were called in to battle as the wind whipped flames jumped from house to house. Breezy point is a closeknit neighborhood of mostly firefighters and cops. Danny mckeefery is a volunteer fireman who rushed here to help his brother save his home. Everything was on fire. Flames were 50 feet up in the air. Just taking everything out. There was no stopping it. Reporter nothing you could do . No. There was no whatever theres no water pressure, theres no were trying to draft out of the ocean but then youre sucking up everything you see on the ground so it was clogging the hoses. There was anything we could really do. Reporter by daybreak, more than 80 homes were still smoldering. In this yard, only a religious icon left standing in the debris. A couple of miles away, another block of homes was left in ashes. Catherine sullivan lived in the rockway ways her entire life but was unprepared for what she saw today. So many people have lost their homes now, fire, its just burning and its very upsetting for all of us. So if anybodys out there to be thinking of us, say your prayers for us, thats what you can do. Reporter many in this community lost family members in 9 11. More died next door in bell harbor a few months later when american flight 587 crashed. But even with this latest tragedy, many told us they are not leaving. They will rebuild. The whole family lost everything. But i dont know, well figure it out. Reporter will you rebuild here . We have to. Theres nowhere else to go. Reporter this is the only road leading in or out of breezy point and many residents after surveying the damage are going someplace, someplace now. We walked with a lot of them and as they passed a neighborhood theyd ask how are you . What can i do for you . And they lost everything. You hear that term strong sense of community in a lot of places scott, but here you get sense they really mean it. Ense they really mean it. Pelley sandy lost its hurricane status yesterday but its still packing strong winds. The center is about 50 miles east of pittsburgh, maximum sustained winds now about 45 miles an hour. As the storm moves west northwest, storm warnings are up for parts of the great lakes. Will sandy mean higher gas prices . The coast guard searches for a captain who went down with his ship in the storm. And an entire town in the dark tonight when the cbs evening news continues. 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Firefighters pumped out flooded basements here, but the problem that worried amy nicholas most was no electricity. Why is this area hit so hard . The trees, the trees went down. So theres so many trees down in the park where the power lines are. Reporter about 94 of stonington, connecticut, is without power. Diving street neighborhood david forest remembers how long it took to get electricity restored after hurricane irene. How is it to know youre going into a period of a week or so without power . I think its better than last year, we kept thinking it was going to be everyday wed get power. Reporter just next door, susan crowe says shes prepared for a number of rough days. You can have a somehow ere but its a cold shower. You have no hot water. Of course, you have nothing to cook with. Reporter down the street, we bumped into utility contractor rusty maxwell who said he was too busy to stop for long. Whats involved with getting the power back on here . Well, the Power Company has to go evaluation all the feeders and the Power Sources and go from there. Reporter scott, this is what those utility crews are up against giant trees on top of power lines. These trees have to be removed before power can be restored. Pelley we wondered if sandy would disrupt gasoline supplies. It turns out six refineries in the northeast were affected by the storm. Two of them shut down and four scaled back production. All of them are expected back in full operation within a week. We spoke to one analyst who told us that gasoline may be in short supply for just a few days in the northeast but there should be no increase in prices. In a moment, well talk with the man who is managing the disaster in new york city, Police Commissioner ray kelly. [ male announcer ] the way it moves. The way it cleans. Everything about the oralb power brush is simply revolutionary. 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