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L.A. Diocese Finalizing $660 Million Settlement; Campaign on to Save Georgia Death Row Inmate; Bush Calls for Middle East Conference

Aired July 16, 2007 - 13:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

KYRA PHILLIPS, CO-HOST: It can't find peace. It can't restore youth or innocence or trust. But $660 million is the price for putting to rest hundreds of sex abuse claims against the Catholic Church.
T.J. HOLMES, CO-HOST: In Alhambra now, judge in Los Angeles to give his blessing to the largest church abuse settlement to date.

PHILLIPS: Hello, everyone. I'm Kyra Phillips at the CNN world headquarters in Atlanta.

HOLMES: And I'm T.J. Holmes, sitting in today for Don Lemon. And you are in the CNN NEWSROOM.

PHILLIPS: Live pictures just outside of Los Angeles, California. This is the Alhambra are affiliate, KVC, bringing up these live pictures.

This is what we know so far. The two-alarm fire at a strip mall. It started just before noon Eastern Time, 9 a.m. local time. This is Valley Boulevard, just north of the 10 (ph) freeway. Part of the building, as you can see, has collapsed.

No word on the injuries or cause at this time. We're told that the nearby business across the street had to -- had to evacuate as firefighters work this fire.

We'll keep you updated on what's happening among firefighters.

Now, the latest sex abuse cases to rock the Catholic Church. At this moment right now, leaders of the nation's largest archdiocese are in Los Angeles superior court, finalizing a landmark settlement.

The Los Angeles Archdiocese will pay $660 million, the largest payout of its kind. More than 500 alleged victims will split the money, and it averages out to more than $1.3 million per plaintiff. The payouts will be based on the severity of the abuse.

The deal ends more than five years of negotiations, but CNN's Kara Finnstrom tells us neither church leaders nor the plaintiffs are celebrating.

(BEGIN VIDEOTAPE)

CARDINAL ROGER MAHONEY, LOS ANGELES DIOCESE, CATHOLIC CHURCH: Once again, I apologize. KARA FINNSTROM, CNN CORRESPONDENT (voice-over): With those words the Cardinal Roger Mahony announced the L.A. Archdiocese's record settlement: $660 million to 508 people who have accused priests of sexual abuse.

MAHONY: It should not have happened and should not ever happen again.

FINNSTROM: The cardinal was then repeatedly asked whether he'd made mistakes handling the allegations.

MAHONY: Spiritually, because sometimes I honestly had reached the bottom. I didn't know what to do, what to do next. It seemed like everything I tried to do was wrong.

FINNSTROM: Sunday's announcement came one day before the civil trials were slated to start, trials where Mahony might have had to testify.

ESTHER MILLER, ALLEGED VICTIM: Mahony decided for a purely business decision to settle this so that he wouldn't stand in front of God and colleagues and the media.

FINNSTROM: Esther Miller is one of the alleged victims who belongs to SNAP, the Survivors Network for those Abused by Priests.

MARY GRANT, ALLEGED VICTIM: There's a picture of me around the age of 13, when I began to be repeatedly raped by a priest.

FINNSTROM: Mary Grant is another.

GRANT: No amount of money or guilty verdict will give back those kids that lost their childhood.

FINNSTROM: Mahony says the church is now using new screening programs and education to prevent future abuse. He says the settlement costs will largely be split between the archdiocese, insurers and the religious orders whose priests were accused.

(on camera) The $660 million settlement that brings a legal end to these cases is by far the largest settlement in the child molestation scandal that's rocked this church. The next largest, $157 million in the Archdiocese of Boston.

Kara Finnstrom for CNN, Los Angeles.

(END VIDEOTAPE)

PHILLIPS: And a reminder: Kara is inside the courtroom. We're going to hear from her and possibly others as soon as the hearing ends.

As for the priests accused of sexual abuse, Cardinal Mahony says almost all were eventually convicted. Sorry about the president's video there bumping up. HOLMES: I think we want to get back to that now. Propping up the Palestinian government, a big job. In just a few minutes, President Bush will announce a big financial and diplomatic push.

On the financial front, he will pledge $190 in additional U.S. aid. He'll also call for a conference this fall among Israel and its Arab neighbors.

Right now Palestinian President Mahmoud Abbas is governing just half of the Palestinian territories. He retreated to the West Bank last month as Hamas fighters trapped his security forces and supporters in Gaza. Hamas is still in control there, jeopardizing the U.S.-backed two-state solution to the Israeli-Palestinian conflict.

And of course, when the president speaks, we will bring that to you live here in the CNN NEWSROOM.

Well, here in Georgia now. Time running out for Death Row inmate Troy Davis. He's due to be executed tomorrow for the shooting death of a police officer in Savannah almost 20 years ago. He swears he's innocent. And now many of the prosecution witnesses agree.

CNN's Rusty Dornin reports.

(BEGIN VIDEOTAPE)

MARTINA CORREIA, SISTER OF TROY DAVIS: I'm trying to answer all these e-mails and things about Troy.

RUSTY DORNIN, CNN CORRESPONDENT (voice-over): On a mission, Martina Correia works 18-hour days with one aim: to save her brother Troy's life.

Troy Davis was convicted of killing Savannah police Officer Mark McPhail in 1989. He's scheduled to be executed on Tuesday. There was no physical evidence, no murder weapon found. Correia says that alone should cast doubt on the jury's guilty verdict.

CORREIA: When you only have eyewitness testimony, you have no physical evidence, people have fallacies. We make mistakes.

DORNIN: A case of a mistaken identity. That's what Davis' lawyers and supporters claim.

This was the scene in 1989, this parking lot of the Greyhound bus station in Savannah, Georgia. Some witnesses say Davis and two other men were following a homeless man across the street, harassing him. Off-duty Officer Mark McPhail ran out to break up the fight. That's when some witnesses claim Troy Davis shot the policeman twice and ran.

In Savannah, the manhunt was on. Davis surrendered to investigators days later.

(on camera) Since Davis' conviction, the defense claims seven witnesses have changed and sometimes even contradicted their own story. During the trial, the defense claims it was another man that shot McPhail in this parking lot. Now some of the witnesses are pointing their finger at the same man, claiming that fear or reprisal and police coercion caused them to accuse Davis.

(voice-over) Monty Holmes is one witness who changed his story. Now he claims he was coerced by police.

MONTY HOLMES, WITNESS: They were trying to get me to say that he did it. He didn't do it.

DORNIN: Major Everett Ragan, head of the homicide investigation unit back then. He dismisses allegations of coercion. And as for witnesses changing their stories, he doesn't believe it.

MAJ. EVERETT RAGAN, SAVANNAH POLICE: There's no doubt in my mind that this is the right person.

DORNIN (on camera): There's no element of doubt that it could have been the other man?

RAGAN: No.

DORNIN (voice-over): Sergeant David Owens has no doubts, either. He was a close friend of the victim, a man everyone called Mac. It was Owens you see here trying to save McPhail's life in the back of the ambulance in 1989. Owens now hopes the victim won't be forgotten.

(END VIDEOTAPE)

HOLMES: Rusty Dornin joins us now after that report. We're talking about Davis here. A lot of questions. And he's been rejected left and right by the courts.

DORNIN: That's right.

HOLMES: What kind of chance does he have now? Any other court? Any other options?

DORNIN: Well, his last hope for a court hearing was dashed on Friday night in Savannah. Apparently, it denied him what they call an extraordinary motion for a new trial.

Right now there's a clemency hearing in Atlanta. This morning the defense witnesses are testifying. This afternoon, the prosecution will testify. And the only thing the parole board can do is actually just commute his sentence to life without the possibility of parole. They can't pardon him or anything like that.

HOLMES: And you were telling me earlier about the history of hearings like this with the clemency board.

DORNIN: Right. And since 1977 they've had 47 of these hearings. And only eight of them have had their sentences commuted.

HOLMES: And also, you've talked to him over the phone, Death Row there. How is he holding up? How is he doing? DORNIN: We spoke to him twice. The last time I spoke to him was on Friday afternoon. And the thing is I asked him -- they keep pointing the finger at this other man.

HOLMES: Right.

DORNIN: And apparently during his trial, he never did that. And we do have a piece of sound from that interview. Let's listen.

(BEGIN VIDEO CLIP)

TROY DAVIS, DEATH ROW INMATE: Because I didn't want to be labeled as a snitch.

DORNIN: And that's the only reason?

DAVIS: Yes, which is stupid.

(END VIDEO CLIP)

DORNIN: He didn't point the finger at this other person during his trial. It only came out later. Now you've got all these witnesses changing their stories and contradicting themselves.

But as we said, his last hope is today. And we understand there may be a decision by sometime tonight.

HOLMES: He is on Death Row, and not to say -- it would have made difference. We're going to have to go ahead. I wish we could talk to more. We've got to get to the president here. Rusty Dornin, thank you so much.

PHILLIPS: The president calling for international support in a conference in the Middle East. Addressing reporters now.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: ... first American president to call for the creation of a Palestinian state.

In the Rose Garden I said that Palestinians should not have to live in poverty and occupation. I said that the Israelis should not have to live in terror and violence. And I laid out a new vision for the future: two democratic states, Israel and Palestine, living side by side in peace and security.

Since then, many changes have come. Some hopeful, some dispiriting. Israel has taken difficult actions, including withdrawal from Gaza and parts of the West Bank. Palestinians have held pre- elections and chosen a president committed to peace. Arab states put forward a plan that recognizes Israel's place in the Middle East.

And all these parties, along with most of the international community, now share the goal of a peaceful, democratic Palestinian state, a level of consensus never before seen on this crucial issue.

Past five years have also brought developments far too familiar in the recent history of the region. Confronted with the prospect of peace, extremists have responded with acts of aggression and terror.

In Gaza, Hamas radicals betrayed the Palestinian people with a lawless and violent takeover. By its actions, Hamas demonstrated beyond all doubt that it is devoted to extremism and murder than to serving the Palestinian people.

This is a moment of clarity for all Palestinians. And now comes a moment of choice. The alternatives before the Palestinian people are stark.

There's vision of Hamas, which the world saw in Gaza, with murderers and black -- murderers in black masks and summary executions and men thrown to their death from rooftops. By following this path, the Palestinian people would guarantee chaos and suffering and the endless perfect perpetuation of grievance. They would surrender their future to Hamas' foreign sponsors in Syria and Iran. And they would crush the possibility of any -- of a Palestinian state.

There's another option, and that's a hopeful option. It is the vision of President Abbas and Prime Minister Fayad. It's the vision of their government. It's the vision of a peaceful state called Palestine as a homeland for the Palestinian people.

To realize this vision, these leaders are striving to build the institutions of a modern democracy. They're working to strengthen the Palestinian security services so they can confront the terrorists and protect the innocent.

They're acting to set up competent ministries that deliver services without corruption. They're taking steps to improve the economy and unleash the natural enterprise of the Palestinian people. And they're assuring that Palestinian society operates under the rule of law.

By following this path, Palestinians can reclaim their dignity and their future and establish a state of their own.

Only the Palestinians can decide which of these courses to pursue. Yet all responsible nations have the duty to help clarify the way forward. By supporting the reforms of President Abbas and Prime Minister Fayad, we can help them show the world what a Palestinian state would look like and act like. We can help them prove to the world the region in Israel that a Palestinian state would be a partner, not a danger.

We can help them make clear to all Palestinians that rejecting violence is the surest path to security and a better life. And we can help them demonstrate to the extremists once and for all that terror will have no place in a Palestinian state.

So in consultation with our partners in the quartet, the European Union, Russia, and the United Nations, the United States is taking a series of steps to strengthen the forces of moderation and peace among the Palestinian people.

First, we're strengthening our financial commitment. Immediately after President Abbas expelled Hamas from the Palestinian government, the United States lifted financial restrictions on the Palestinian Authority that we had imposed.

This year we will provide the Palestinians with more than $190 million in American assistance, including funds for humanitarian relief in Gaza. To build on this support, I recently authorized the Overseas Private Investment Corporation to join in a program that will help generate $228 million in lending to Palestinian businesses.

Today, I announce our intention to make a direct contribution of $80 million to help Palestinians reform their security services. A vital effort they're undertaking the guidance of American General Keith Dayton.

We will work with Congress and partners around the world to provide additional resources, once a plan to build a Palestinian institutions is in place.

All this assistance, we are showing the Palestinian people that a commitment to peace leads to the generous support of the United States.

Second, we're strengthening our political and diplomatic commitment. Again, today President Abbas and Prime Minister Olmert sat down together to discuss priorities and resolve issues.

Secretary Rice and I have strongly supported these meetings, and she has worked with both parties to sketch out a political horizon for a Palestinian state. Now we will intensify these efforts with the goal of increasing the confidence of all parties in a two-state solution.

And we will continue to deliver a firm message to Hamas. You must stop Gaza from being a safe haven for attacks against Israel. You must accept the legitimate Palestinian government, permit humanitarian aid in Gaza and dismantle the militias. And you must reject violence and recognize Israel's right to exist and commit to all previous agreements between the parties.

As I said in the Rose Garden five years ago, a Palestinian state will never be created by terror.

Third, we're strengthening our commitment to helping build the institutions of a Palestinian state. Last month former prime minister -- British prime minister, Tony Blair, agreed to take on a new role as quartet representative.

In his post he will coordinate international efforts to help the Palestinians establish the institutions of a strong and lasting free society, including effective governing structures, a sound financial system, and the rule of law. He will encourage young Palestinians to participate in the political process. And America will strongly support his work to help the Palestinian leaders answer their people's desire to live in peace.

All the steps I have outlined are designed to lay the foundation for a successful Palestinian state in the West Bank and Gaza. A nation with functioning political institutions and capable security forces and leaders who reject terror and violence.

With the proper foundation, we can soon begin serious negotiations towards the creation of a Palestinian state. These negotiations must resolve difficult questions and uphold clear principles. They must assure that Israel is secure. They must guarantee that a Palestinian state is viable and contiguous. And they must lead to a territorial settlement with mutually agreed borders, reflecting previous lines and current realities and mutually agreed adjustments.

America is prepared to lead discussions to discuss these issues. But they must be resolved by Palestinians and Israelis themselves. Resolving these issues would help show Palestinians a clear way forward and ultimately could lead to a final peace in the Middle East, a permanent end to the conflict and an agreement on all issues, including refugees in Jerusalem.

To make this prospect a reality, the Palestinian people must decide that they want a future of decency and hope, not a future of terror and death. They must match their words denouncing terror with action to combat terror.

The Palestinian government must arrest terrorists, dismantle their infrastructure and confiscate illegal weapons as the road map requires. They must work to stop attacks on Israel and to free the Israeli soldier held hostage by extremists. And they must enforce the law without corruption so they can earn the trust of their people and of the world.

Taking these steps will enable the Palestinians to have a state of their own. And there's only one way to end the conflict. And nothing less is acceptable.

Israel has a clear path. Prime Minister Olmert must continue to release Palestinian tax revenues to the government of Prime Minister Fayad. Prime Minister Olmert has also made clear that Israel's future lies in developing areas like the Nagaf (ph) in Galilee, not in continuing occupation of the West Bank.

This is a reality that Prime Minister Sharon recognized, as well. So unauthorized outposts should be removed and settlement expansion ended.

At the same time Israelis should find other practical ways to reduce their footprint without reducing their security so they can help President Abbas improve economic and humanitarian conditions.

They should be confident that the United States will never abandon its commitment to the security of Israel as a Jewish state and homeland for the Jewish people.

The international community must rise to the moment and provide decisive support to responsible Palestinian leaders working for peace. One forum to develop that support is the ad hoc liaison committee, a group chaired by Norway that includes the United States and Japan, the World Bank and the International Monetary Fund, and Arab states such as Saudi Arabia, Egypt and Jordan.

Today I call for a session of this committee to gather soon so that the world can back its words in real support for the new Palestinian government.

The world can do more to build the conditions for peace. So I will call together an international meeting this fall of representatives from nations that support two-state solution, reject violence, recognize Israel's right to exist, and commit to all previous agreements between the parties. The key participants in this meeting will be the Israelis, the Palestinians, and their neighbors in the region.

Secretary Rice will chair the meeting. She and her counterparts will review the progress that's been made toward building Palestinian institutions. They will look for innovative and effective ways to support further reform. And they will provide diplomatic support for the parties in their bilateral discussions and negotiations so that we can move forward on a successful path to a Palestinian state.

Arab states have a pivotal role to play, as well. They should show strong support for President Abbas's government and reject the violent extreme -- extremism of Hamas. They should use their resources to provide much needed assistance to the Palestinian people.

Nations like Jordan and Egypt, which are natural gateways for Palestinian exports, should open up trade and create opportunities on both sides of the border.

Arab nations should also take an active part in promoting peace negotiations. Relaunching the Arab League initiative was a welcome first step. Arab nations should build on this initiative, by ending the fiction that Israel does not exist, stopping the incitement of hatred in their official media, and sending cabinet level visitors to Israel.

All these steps, today's Arab leaders can show themselves to be the equals of peacemakers like Anwar Sadat and King Hussein of Jordan.

The conflict in Gaza and the West Bank today is the struggle between extremists and moderates. And these are not the only places where the forces of radicalism and violence threaten freedom and peace. Struggle between extremists and moderates is also playing out in Lebanon, where Hezbollah and Syria and Iran are trying to destabilize the popularly elected government.

The struggle is playing out in Afghanistan, where the Taliban and al Qaeda are trying to roll back democratic gains.

And the struggle is playing out in Iraq, where al Qaeda insurgents and militia are trying to defy the will of nearly 12 million Iraqis who voted for a free future.

Ceding any of these struggles to extremists would have deadly consequences for the region in the world. So in Gaza and the West Bank and beyond, the international community must stand with the brave men and women who are working for peace.

Recent days have brought a chapter of upheaval and uncertainty in the Middle East. But the story does not have to end that way.

After the wave of killing by Hamas last month, a 16-year-old girl in Gaza City told a reporter, "The gunmen want to destroy the culture of our fathers and grandfathers. We will not allow them to do it." She went on, "I'm saying it's enough killing. Enough."

That young woman speaks for millions in Gaza, the West Bank, in Israel, and Arab nations and in every nation. And now the world must answer her call. We must show that, in the face of extremism and violence, we stand on the side of tolerance and decency. In the face of chaos and murder, we stand on the side of law and justice. And in the face of terror and cynicism and anger, we stand on the side of peace in the holy land.

Thank you.

PHILLIPS: The president of the United States there at the White House talking about propping up the Palestinian government, which of course, has been in turmoil since the breakdown of it.

The president saying that he's not only going to give a big financial and diplomatic push; he's also going to pledge additional aid of $190 million, in addition to calling for a conference this fall among Israel and all its Arab neighbors. He's hoping that the majority of that money will go towards security issues and trying to rebuild that government.

HOLMES: Want to take you back to this live picture out of Alhambra in California where we've been keeping an eye on this strip mall fire.

You can see the flames are pretty much gone here. And so is this building. Several businesses will be lucky to salvage anything out of that building now.

We are keeping a close eye on this. We're going to give you an update throughout the NEWSROOM and certainly when we come back here in a moment.

PHILLIPS: Straight ahead, a single shot, a single suspect. A singer falls dead during a nightclub performance. Wyoming police say her estranged husband is their only quarry.

HOLMES: Also, Bobby Kennedy made poverty a cornerstone of his 1968 campaign. Can John Edwards stir similar sentiment in '08?

PHILLIPS: And we're watching your money this hour. Will the Dow soar to a new record?

You're watching CNN, the most trusted name in news.

(COMMERCIAL BREAK)

PHILLIPS: That's our top story, a settlement in the latest sex abuse scandal to rock the Roman Catholic Church. Leaders of the Los Angeles Archdiocese and hundreds of alleged victims came face-to-face in court this morning.

CNN's Kara Finnstrom has just come out of the courtroom.

Tell us what happened, Kara.

KARA FINNSTROM, CNN CORRESPONDENT: Well, that settlement made it official in an emotionally charged courtroom this afternoon. Attorneys pointing out that part of the settlement stipulates that those 508 plaintiffs in the case should get their payouts by December 1st.

Both of the attorneys in this, very emotional. Their voice cracking at times as they were speaking. And we do have a press conference under way right now. We want to let you hear from one of those attorneys, Raymond Boucher, who represented the plaintiffs. Here is what he had to say.

RAYMOND BOUCHER, PLAINTIFFS ATTORNEY: We came to court prepared to start trial in a case involving 14 victims against a priest by the name of Father Higenbach (ph). Over the last several weeks and months, we have been negotiating with the Los Angeles Archdiocese and with the insurance company.

As of Monday, there was no chance of a settlement. As of Wednesday, we had a chance. As of Friday, we were going to trial. And I am pleased to report that today, we are able to put on the record in front of the Honorable Judge Haley Fromhultz (ph), a settlement of the Los Angeles Archdiocese clergy abuse cases, on behalf of the 508 victims for $660 million.

FINNSTROM: Now, one point to that. The attorneys said there are a number of religious orders who did not take part in this settlement and there may be cases against them still pending.

Also, the other attorney in this case, the church attorney, Jay Michael Hennigan (ph), his voice cracking as he spoke, and he said that this has forever changed the church. He said he would like to think the church could have made these changes without this lawsuit. That he didn't believe that they could have.

In that courtroom this afternoon, lots of plaintiffs in this case. At one point, actually before this hearing began, they had all of us file out of the courtroom because there were so many people in there. Maximum occupancy of 67 and there were well over 100 people.

And so they had all of us file out, and then let a number of us back in. Including a number of those plaintiffs who were sobbing. Some of them, throughout that hearing, also mumbling under their breath when the church attorney said that he wished that this conclusion could have been reached sooner.

Kyra?

PHILLIPS: Kara, when will they get the money? Could it be by the end of this year? And also, what about the personal files, regarding the investigations that were allegedly done? Will those ever become public record?

FINNSTROM: Well, first of all, they were saying December 1st now is the outdate. Sounds like a lot paper work still needs to be done here because this conclusion was reached so quickly and the settlement still needs to have a lot of the fine paperwork done. But December 1st is the date that they are hoping as the out date for these payments to be made by to all of these plaintiffs.

One of the attorneys representing those plaintiffs said that was a concern of hers. She doesn't want this to drag on. She wants her plaintiffs to be paid in a timely manner.

As far as the records, this agreement does stipulate that those records, which Mahony had tried for a long time to shield from the public, will now be made public. And that should give the public a better idea how much the church knew about all of these accusations, when they knew it and what they actually did about them.

PHILLIPS: It will be interesting to see what comes of those files. That's for sure. Kara Finnstrom, thanks so much.

PHILLIPS: And we are going to hear more from the victims, as we follow this live news conference. Obviously, attorney stepping up to the mike. When those that have been awarded part of the settlement -- you can actually see one of the victims standing right behind the attorney there. We will take it live.

HOLMES: Well, can you say DOW, 14,000. We might be saying it, we might be seeing it. We are oh, so close. And Susan Lisovicz is at the New York Stock exchange to tell us just how close we are. Hello there, kind ma'am.

(STOCK REPORT)

STEVE SANCHEZ, CLAIMS PRIEST ABUSE: I hope by today's settlement that the victims of clergy abuse are no longer portrayed in the media with the $660 million settlement, I hope I am no longer and I hope all my other fellow victims are no longer alleged victims; $660 million should take that alleged off. Cardinal Mahony got off cheap today.

UNIDENTIFIED MALE: Here here.

UNIDENTIFIED MALE: Very cheap.

UNIDENTIFIED MALE: He needs to go away.

SANCHEZ: For $660 million, he bought himself out of testifying in our case. That's a lot of money, we live in the city where money trumps justice. O.J. Simpson got off, Michael Jackson molested kids, and he got off. Cardinal Mahony is walking away by writing one check and this issue is not over. I just want to thank all the victims for coming forward and let everybody know, that us at snap, we are not going away. Thank you.

LEE BASHFORTH (PH), CLAIMS PRIEST ABUSE: Good morning. My name is Lee Bashforth. I am a victim of Michael Wimpey, a admitted and convicted serial predator of children, and Roger Mahony's Archdioses of Los Angeles. There is a picture of him here, with me as a 7-year- old boy. Which is when my abuse began and lasted nearly a decade.

We are all here today to hopefully begin the process of closure, a very difficult and painful journey. But there are some things I would like you to focus on.

Yesterday, Roger Mahony offered a very disingenuous and hollow apology. And he is sorry, I believe he is sorry. But he's sorry he was caught covering up these crimes. He's sorry he now has to be held to some account for his crimes. But he's not sorry any of this happened. If he was sorry, there wouldn't be convicted and admitted pedophile priests still on his payroll today.

And the Catholics of Los Angeles and Southern California need to know that what they put in the collection basket goes to sustain the life of admitted, convicted, serial predators of children. Nothing has changed in the archdiocese of Los Angeles today. They have simply made a business decision to make this go away. Much like any corporate criminal, Roger Mahony could not allow himself to go on the witness stand, and create a debacle much like he created in 1998 in Stockton, California. When every juror to a person, said they found him to be lying to them.

To any victims that aren't able to be here today and are listening to this, I would like to remind you it is critical that you stay in therapy, that you come out and seek the help that you need. Many of us came forward using our names all along for that very purpose. To show that there was no reason -- no reason to hide. That you can come forward and get the help you need and encourage anyone who has not begun to deal with the trauma caused them as a child to come forward and seek out organizations like SNAP and therapy that will help them get better.

I think that's all I really have to say.

PHILLIPS: Lee Bashforth, one of the alleged victims in the sex abuse scandal that has rocked the Roman Catholic Church. You are watching a live news conference out of Los Angeles.

It was a whirlwind weekend; $660 million settlement. Landmark settlement between the Roman Catholic Archdiocese of L.A. and more than 500 alleged victims of clergy abuse. Some feel it is a process of closure. Others say it is still not enough. That even though Cardinal Mahony apologized, they still feel he let this abuse go on for decades and the pain and suffering still continues. We are going to continue to monitor and talk about this landmark settlement. Both hearing from attorneys for Cardinal Mahony and also the victims throughout the next couple of hours.

LEMON: Well, taking a break but not necessarily a vacation.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: What worries you the most when you are out here doing this?

UNIDENTIFIED MALE: Getting shot with American ammunition.

(END VIDEO CLIP)

LEMON: Doesn't sound like much of a vacation there does it? Young Westerners head to the Middle East to throw their support behind Palestinians. Is that your idea of a summer break? That story coming up.

PHILLIPS: Three days, eight states a welcomed political opportunity, but can John Edwards prove he's sincere about helping America's poor?

Next in the NEWSROOM, a candidate takes on poverty.

(COMMERCIAL BREAK)

PHILLIPS: Now to the campaign trail and mad dash for cash. Second quarter fundraising totals are in and the Dems dominate.

Barack Obama leads the pack raising more than $32 million. Hillary Clinton is a close second with $27 million. John Edwards in a distant third, followed by Bill Richardson and Christopher Dodd.

Now on the Republican side Rudy Giuliani leads the way, raising $17 million. Mitt Romney follows with $14 million. John McCain raised $11.2 million, but spent most of it and leaving him with less than $2 million now.

Well, former Senator John Edwards is trying to give his campaign a bit of a boost. He's in New Orleans kicking off a eight-state tour to highlight poverty in America.

He spent yesterday in the city's lower Ninth Ward, a low-income area, still struggling to recover from Hurricane Katrina. Edwards' tour evokes memories of a Democratic presidential candidate from the past, Bobby Kennedy. But will Edwards' plan work?

Joining us now to discuss that, historian Richard Shenkman.

Richard, it was interesting, we got talking about this today and where exactly John Edwards is going, the states that he will be visiting and also where he's ending up. And it was reminiscent of Bobby Kennedy. The same type of poverty tour he did back in 1968. Is he trying to do what Bobby Kennedy did and does he think it is going to work?

RICHARD SHENKMAN, HISTORIAN: Well, of course, it is always a positive to try to identify yourself as a presidential candidate when somebody from the past who most Americans have positive memories about. Robert Kennedy is one of those people.

Unfortunately, Robert Kennedy, when he was going on his Appalachian tour and he was going to rural poverty areas, he was speaking to an issue of his time, but it is not an issue for our time. And this is the problem John Edwards faces.

Presidential candidates and presidents are basically supposed to try to respond to the challenge of their own time. And I suspect that if Robert Kennedy was running for president today he wouldn't be taking this tour.

PHILLIPS: But that's so interesting because so many times we talk about the billions of dollars going into Iraq and then the typical comment is wow, just imagine if we took all that money and put it toward our poor here in America.

Is John Edwards onto something? Is he trying to turn around the issues and say hey, look, I am getting back onto something that Bobby Kennedy was onto, look what he did for the poor, look at what he did for civil rights. I want to get the money back into our country.

SHENKMAN: Well, there was a historic moment to have made this call, to make this an issue and that was after Katrina. President Bush so bungled that opportunity that America moved on.

And the problem is presidential candidates, as powerful as they are, and they can command media attention, they can't force Americans to pay attention to an issue they don't really want to pay attention to.

You know, if John Edwards wasn't talking about this issue, it is not like there are millions of people demonstrating in the streets demanding that politicians talk about it. It wouldn't be talked about.

It's not to say it is not a problem. It's not to say that John Edwards is not showing his good heart herein trying to draw public attention to the problem of poverty.

But presidents and presidential candidates are basically hired to address the central issues of their day. Today the central issue of our time is, of course, Iraq and according to the polls it is also health care. Those are the two top issues Americans are concerned with. It is not poverty.

The danger is that John Edwards turns into a man from the past and reminds Americans of the old Democratic party, where it seemed like the Democrats were only interested in the concerns of the poor and not the middle class. And that really damaged the Democratic party for almost a generation.

PHILLIPS: You brought up the issues. We've got a CNN/Opinion Research poll, which points that out, Richard. Iraq, economy, health care, immigration, terrorism. I mean, poverty didn't even make the top five there. So what happened? What happened between the time of Bobby Kennedy when it worked and it resonated to now? I mean, did we become less sensitive? Do we not care about America's poor anymore?

SHENKMAN: Well, it is a different time. Back in the 1960s, early 1960s, we didn't have a Federal budget that really addressed the concerns of poor people. We had a budget that addressed the concerns of other groups, but not the poor.

As a result of what happened in the 1960s, riots in major cities, the Great Society programs that we -- we changed the Federal government and now the poor, they don't get a great rate the Federal government, but there are food stamps. There's aid to children, for insurance. There are all kinds of programs.

We spend billions and billions of dollars on poverty programs. So it is a different period there isn't really a sense among Americans, I don't think, that the poor are being wholly neglected, which was the case back in the 1960s.

PHILLIPS: Do you think John Edwards can -- this may not push him forward in this election. Can this do anything for the poor? Let's say it doesn't do anything for John Edwards, can it do anything for the poverty or for the people who are struggling right now?

SHENKMAN: Well, if John Edwards wants to help the people who are poor, he can try to draw public attention to it. I think that's a good thing in terms of just helping Americans understand that there still are a lot of people who are poor.

But it is not going to help his campaign and how is it going to help the poor people if this is an issue that will not resonate?

You know, it is one of those things -- hats off to John Edwards for trying to push this issue onto the American agenda. I just don't think it is going to make it there.

If there is another Katrina, horrible incident like that, horrible tragic event like that, well then there will be another opportunity and in that case, you'd have John Edwards if he were President well positioned to draw public attention to the problem, and provide some leadership, the kind of leadership that President Bush decided not to provide in that case.

PHILLIPS: You make a great point about momentum, it's like 9/11 when that happened everybody had the American flags up, everybody was so patriotic. Hardly see a flag on the front porches anymore. It's sort of sad how things go in and out. It is all about keeping that continual effort. Richard Shankman, sure appreciate your time. Thanks a lot.

SHANKMAN: All right, thank you.

PHILLIPS: Well, once again CNN is raising the bar with the presidential debates. And, you can take part next Monday, July 23rd. The Democratic candidates square off in a CNN YouTube debate. Anderson Cooper hosts this first of it's kind event live, and interactive on TBN online. You can see the Republican candidates debate on Monday, September 17th. And, you can submit your own questions right now. Just log on to CNN.com/Americavotes. CNN is your political headquarters.

HOLMES: All right, I want to take you back now to live pictures of this fire we have been watching for the past couple of hours. A strip mall fire in Alhambra. You can see it pretty much gutted this building. Not much left, the roof has collapsed. Again, this is in Alhambra the area of Ninth Street and Valley Boulevard. Firefighters have been going after this fire a couple of hours here now.

The flames are gone now, but you can see the smoke and you can see that the building is gone as well -- the roof. Several businesses had to be evacuated and several businesses obviously here destroyed. We get word now that the bakery in the building may have been where this fire started. We are keeping an eye on this.

Another important thing to note here is that -- do not know of any injuries. So, that is a good thing. But, we are keeping an eye on it here in the newsroom. Also keeping an eye on the twisted power of nature. An earthquake that has left a deadly scar on Japan. Got some amazing pictures to show you. That's coming up, stay here.

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HOLMES: Scenes of death and destruction after a pair of strong earthquakes jolt northwest Japan, as well as Tokyo 150 miles to the south. Buildings collapse, roads buckled. Seven people dead. More than 800 hurt. The quakes both with a 6.8 magnitude, were centered off the coast 10 miles or more below sea level.

The first quake triggered an automatic shutdown of three reactors at one of the world's largest nuclear plants. A small fire broke out at the plant's electrical facility. And radioactive water leaked from one of the reactors. Nuclear regulators in the U.S. say they are ready to send experts to help if needed.

PHILLIPS: Sizzling or stormy across much of this country. Rob Marciano keeping track of all that in the CNN Weather Center. Hey, Rob.

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HOLMES: Well, a huge payout, a huge debate now. The Los Angeles Catholic Archdiocese about to pay millions to settle hundreds of alleged clergy abuse cases. But, some plaintiffs say it has never been about the money. New details straight ahead.

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