This is a rush transcript from "On the Record ," June 19, 2008. This copy may not be in its final form and may be updated.

GRETA VAN SUSTEREN, FOX NEWS HOST: Tonight, a Christian musician and studio owner gunned down. So is his close friend. At this hour, police are hunting for the killer of Matthew Butler and Stephen Swan. The double killings happening this morning right outside Butler's recording studio in Garland, Texas.

Joining us on the phone is Officer Joe Harn from the Garland Police Department. And I hear, sir, that you have breaking news tonight.

JOE HARN, GARLAND POLICE DEPARTMENT: Yes. We've just been informed that the car that we've been hunting for, a 1995 Ford Crown Victoria, has been located in east Texas. Three males have been taken into custody. We're working on trying to find out who those folks are. But we're in hopes that we have located not only the car but the people who were responsible for these murders.

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VAN SUSTEREN: Now, the car, sir, as I understand, that you were on lookout for, belonged to Stephen Swan, who is one of the two who was murdered?

HARN: Stephen Swan, yes, it was his vehicle that we found. That was the vehicle missing from the scene last night.

VAN SUSTEREN: Now, the murder occurred outside this Christian recording studio in the very early morning hours. And it's in the Dallas area. You said that the car was recovered in east Texas. How far away is the car recovered from Dallas? How many miles or how much driving distance?

HARN: Don't know exactly how far. From here to the border is some 200, 250 miles. It's somewhere along that corridor, along the I-30 corridor, we think. Again, we've just received this information and trying to get things -- more information as we're talking right now.

VAN SUSTEREN: All right. Sir, as best I understand it, these two gentlemen were leaving the Christian recording studio shortly after midnight, and then the two bodies were found by bicyclist about 1:15, 1:20 in the morning?

HARN: Yes, it was around 1:20 this morning. The bicyclists rode by, saw the bodies there in the parking lot, went to a nearby fire station and they contacted us. That's when we found the two men shot there in the parking lot right outside the recording studio .

VAN SUSTEREN: Besides the missing automobile, were their wallets taken from them, to suggest that the motive might have been robbery?

HARN: Don't know that, other than the vehicle being taken. One of the men had his identification on him, the man that the car did not belong to. The man that the car did belong to, Stephen Swan, his identity was not on him. We don't know that his identity may have been in his vehicle.

VAN SUSTEREN: Now, the three men who were -- who are now in custody, are they -- do you know if they're talking?

HARN: I don't know. I don't have any details on that right now. We've just found that out in the past few minutes .

VAN SUSTEREN: Well, it certainly is significant information. Thank you, Officer.

And just to repeat, that two people who were gunned down, the police have been looking for the automobile belonging to one, it has just been located, with three people inside now in custody. So it's a huge development in the -- in the investigation into who murdered these two men.

All right, now let's talk about the two men. One was a Christian musician named Matthew Butler. And why would anyone want to gun him down? Well, we're joined now by Terese Arena, reporter for KLIF radio in Dallas. Terese, tell me about this man, Mr. Butler? What do you -- can you tell me about him?

TERESE ARENA, KLIF RADIO: Well, he was a young man who became interested in a recording business about eight years ago. He saw someone's home studio and said, Gee, that sounds like something I'd like to do. So he took some classes at a local community college and started his own studio about three years ago, after he and his wife got married, and was slowly, you know, building people and getting Christian recording artists to come in and record in his studio.

VAN SUSTEREN: So he -- in addition to he himself is a musician, he actually had a studio that helped put people other people's music out?

ARENA: Yes. He was -- you know, he was his own musician, self- taught, and was getting other recording artists in there, as well.

VAN SUSTEREN: Well-liked in the community?

ARENA: Well liked, yes. I mean, he was a religious young man. He and his wife were very religious. She's had things to say today that she felt that whoever was responsible for it, she knew that her husband would meet them in heaven and forgive them for what they'd done.

VAN SUSTEREN: What -- I take it that the hours being at the recording studio being about midnight, 1:00 o'clock in the morning, that's not unusual for someone who's in the recording business necessarily, is it.

ARENA: Not necessarily, no. And in fact, he had apparently called his wife a little while earlier and said, you know, We're going to grab something to eat and then we'll be home.

VAN SUSTEREN: Two children?

ARENA: Two children, Matthew, Jr., who was 2, and a little girl who is 1.

VAN SUSTEREN: Is -- was he known in the community? I mean -- I mean, you work for a radio station. Was he known to you before you heard about his murder?

ARENA: We had not heard of him before. But again, he was probably -- he was known better over in the Garland community. And so, in fact, they've -- his friends are planning to have a jam session on Sunday, rather than any kind of memorial service, because his wife said that's what he would want.

VAN SUSTEREN: Terese, thank you very much.

ARENA: You bet.

VAN SUSTEREN: Joining us by phone is Matthew Butler's wife, Jamie. Jamie, I -- you know, I just don't know whatever to say to anybody in these circumstances, except that my heart goes out to you and to your two children.

JAMIE BUTLER, WIFE OF MURDER VICTIM: Thank you.

VAN SUSTEREN: Jamie, what was your husband like?

BUTLER: My husband was an amazing man, and he -- he went through some hard times when he was young, but he always knew that God would bring him through. And he relied strongly on his faith and he relied strongly on his friends and his family. And he was never afraid, ever, to ask for help whenever he needed it. And yet he -- he went through so many years of struggle.

And I can honestly say that at the young age of 28, when he took his last breath, that he lived his dream. His dream and his desire was to be a husband and a father and to own a recording studio. That's what he loved. He loved music with all of his heart. And he was an amazing musician, an amazing audio engineer, along with Steve. Steve was his best friend of eight years.

And the only way that I think that God really had his hand on both Matthew and Steve, and although their lives ended in such tragedy, the lives that they lived were such a great testimony of the grace and the mercy and the peace that God gives when we don't have everything and when we don't know what to do. Matthew was just an amazing walking testimony. And even in his death, he's a great testimony of God and of his great mercy.

And that's what my husband would want everyone out there to know, that God loves them. And no matter what they go through, even for these gentlemen that -- my husband was a strong believer in that people are good at heart and God -- every one of God's creations is a good creature and that circumstances may lead them to do bad things.

And so for these men out there that have done this, I would want them to know that my husband -- we're glad and ecstatic that they found them, but we want these men to know Christ and to know that no matter what, God died on the cross for them and that he will forgive them. And my husband, I know, is waiting at the gates of heaven, wanting to meet these men and saying, I forgive you, as well.

VAN SUSTEREN: Do you remember when you first met your husband, how you met him?

BUTLER: We met in a church. I was raised in the Pentecostal church and he was raised Baptist. And we met at a -- he came to my church and we started dating. And a good friend of ours, who was also a musician at the time, knew Matthew and introduced us. And now he has gone on, this gentleman, Mr. Denver Stanford (ph). He's has also now gone on to be with the Lord, and I know my husband is dancing and praising God with Denver right now and...

VAN SUSTEREN: And you have two children?

BUTLER: We have a 1-and-a-half-year-old, Michaela, and a 2-and-a- half-year-old, Matthew Jr. And they're my joy.

VAN SUSTEREN: Indeed. And certainly, your husband's joy, as well, as his wife was his joy, too. Jamie, I'm terribly sorry. At least tonight, there's been -- they found the car belonging to Stephen, and they've arrested three people. Hopefully, there will at least be some justice. Jamie, thank you.

BUTLER: Thank you.

VAN SUSTEREN: Jon David Wells knew Stephen Swan and is a reporter for KLIF Radio. J.D. joins us live from Dallas. J.D., what a terrible story. But of course, we have breaking news. At least they have found your friend's car, the person you know's car, with three people in it. But tell me about Stephen Swan.

JON DAVID WELLS, KLIF RADIO: Stephen Swan was a brilliant individual. He was home schooled. He taught himself more than any college could ever teach him. That includes -- he was a self-taught computer programmer. He was able to work for a company here called Ellipse (ph), and essentially single-handedly saved their business.

He was a passionate patriot and a devout Christian. And he was a good man. He'd written hundreds of songs. He was -- he was taken away from us far too soon. He was witty. He was -- he was a young man who had his whole life out in front of him. He wanted to do so much for this country and so much for his community and so much for his church. And he just had a long, long way to go before his life was ended so short. It was just terrible.

VAN SUSTEREN: And indeed, it is terrible, two very religious men working late, doing music, one a father. But you know, there's just no way -- there's no way -- there's really nothing to say except we hope we get them justice. J.D., thank you.

WELLS: Certainly.



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