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Extending the Tax Cuts; Pope Admits Failures with Abuse Scandal; Suffering at Hands of Abusers; 31 House Democrats Defying Leadership Over Tax Cut Plan; Governor Schwarzenegger Requesting San Bruno Be Declared Federal Disaster Area; Iowa Farm at Center of Egg Recall Had Previous Problems. Craigslist Deletes Adult Services Section; Martin Luther King's Close Friend and Photographer Lived Double-Life?; Michael Steele Speaks Out; Medal of Honor Recipient: "Bittersweet"; Time for Us to Forgive & Forget

Aired September 16, 2010 - 08:59   ET

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

KYRA PHILLIPS, CNN ANCHOR: Good morning, everybody.

Well, the Pope says that the church hasn't responded to the sex abuse problem like it should have and we're going to hear from one victim in the UK who couldn't agree more.

A photographer was the eye of the Civil Rights movement and maybe an ear for the FBI. We're going to try to find out why the bureau would want this guy as its spy.

And peanut allergy awareness and there's new territory -- a peanut free zone at the ballpark.

It's 6:00 a.m. out west, 9:00 a.m. in the east. I'm Kyra Phillips and you're live in the CNN NEWSROOM.

And we begin with your money, your job and your taxes. This morning, we're covering several stories that affect your bottom line. Just about a half hour ago we learned that initial claims for unemployment have dropped slightly -- 450,000 Americans filed for the first time last week. That's the lowest weekly level in two months.

And here's some perspective on the big picture. Economists say that the recovery won't really take hold until claims slip below 400,000.

Now, let's turn to the tax cuts. President Obama is facing growing opposition from his own party. Thirty-one Democrats in the House are now demanding that the Bush era tax cuts be extended for all Americans including the wealthy.

The president has said that those cuts should only be for those making less than $250,000 a year.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Right now we could decide to extend the tax relief for the middle class. Right now, we could decide that every American household would receive a tax cut on the first $250,000 of their income.

But once again, the leaders across the aisle are saying no. They want to hold these middle class tax cuts hostage until they get an additional tax cut for the wealthiest 2 percent of Americans.

(END OF VIDEO CLIP)

PHILLIPS: All right. Let's break down how those numbers add up both politically and economically.

Josh Levs taking a closer look for us -- Josh.

JOSH LEVS, CNN CORRESPONDENT: Kyra, you know, this 31 number that we're hearing about is a big chunk of the Democrats' lead in Congress in the first place. And keep in mind, just because 31 people signed this doesn't mean only 31 Democrats opposing it.

And this is part of the challenge now for the president and others on his side who are in support of his plan.

Let's take a look at a few numbers quickly. So you have, as we just heard, 31 Democrats signing this letter asking the president to keep in place the tax cuts including for those wealthier Americans.

Now take a look at the overall break down in the House. You have 255 Democrats in the House, 178 Republicans. So right there, if you think about 31, a big chunk of the lead. Up to and including getting close to half of the lead the Democrats have there in the House of Representatives.

Over in the Senate, this is the breakdown there, 57 Democrats, 41 Republicans and the two independents. And it would take the 60 in order to continue to pass what the president is asking for here. So that is a challenge.

Now this letter that we're hearing about was signed by four lawmakers. I think we have a picture of who they are right here. You have these four representatives today. Jim Matheson, Melissa Bean, Glenn Nye, and Gary Peters.

And we actually heard from Gary Peters himself just a little bit earlier on "AMERICAN MORNING."

(BEGIN VIDEO CLIP)

REP. GARY PETERS (D), MICHIGAN: Folks in the higher income brackets account for a large percent of consumer spending. Seventy percent of the economy is consumer spending.

Right now demand is still very soft on the consumer side. We want to make sure consumers are still out there spending, creating demand.

(END OF VIDEO CLIP)

LEVS: Now, folks, I'll tell you a lot of us are going to hear about these battles going in Congress and it is hard to figure out how it's actually going to apply to your life, so I'm going to give you a couple examples here.

What we've done by going to the Tax Policy Center Web site. And it's -- you can check it out. It's from the Urban Institute and Brookings Institution. And basically you plug in a bunch of information. And here's just a couple examples of what we found.

If you have this couple -- this is our friendly neighborhood avatar couple here we like to revisit from time to time. If they have an income around $57,000 and if currently they're paying about this much in taxes, about $3400 in taxes.

Well, if these tax cuts were to expire, the ones that were established under the Bush administration, if they suddenly went away right now, this couple would be paying $2,000 more in taxes every year. That is a big chunk of change for this couple.

Now we're hearing a lot about the wealthy. Those making more than $250,000 a year. So we're going to jump way up. Suddenly this couple making a heck of a lot of money, look at this. We're giving them an income level up near $400,000. And if their current taxes are about $100,000, you would see them go up about $6,000.

So that's just a couple of examples there of how this ultimately could affect you and since we've got time, I'm going to toss in one more. One of the buzz words of this debate about your taxes and what was happening with this nation's economy right now and about this specifically, the president and his plan, millionaires.

So I'm making this couple millionaires as our last example here. If we give them an income of $1.75 million -- they're rolling in dough right now -- their taxes pretty high here, $573,000. Look at what would happen if the cuts expired. It would go up about $70,000.

That right there is a good example of this kind of debate we're hearing about on both sides. Some people saying leave that money in the private sector. They'll spend it. They might invest it. Others saying the nation has got to do something. We have this preposterous the debt. Need to cut back in somewhere. Pull that in for the government.

So this is what you're hearing about and this whole debate, Kyra, about tax cuts and the future of our economy.

PHILLIPS: Yes. It affects all of us.

LEVS: Yes, all of us.

PHILLIPS: That's for sure. We all want to see how this is all going to work.

LEVS: Right.

PHILLIPS: Josh, thanks.

LEVS: OK.

PHILLIPS: Well, now let's "Fast Forward" to a couple other events on our radar today.

President Obama's expected to talk more about the economy and jobs later this hour when he delivers remarks at the export council meeting at the White House. That's scheduled 9:45 Eastern Time. We'll dip into that.

And at the top of the hour, the government releases its Annual Poverty Report. This year's numbers are expected to be a grim reflection of our lousy economy. Those findings due to be announced about 10:00 Eastern. We'll bring them to you.

California's governor wants the White House to declare San Bruno a disaster after that horrific gas explosion and fire a week ago today.

Three people are still missing. Four people were killed. And more than three dozen homes were completely destroyed. The feds are taking a look at the ruptured pipe to see exactly what went wrong.

But a consumer watchdog group has an idea of what we went wrong. It claims that the utility PG&E had planned to replace a section of that old 1948 gas pipe about three years ago and raised rates on customers to pay for it, but the new pipe didn't happen.

The watchdog's lawyer told CNN's Dan Simon that the money was spent elsewhere.

(BEGIN VIDEO CLIP)

MIKE FLORIO, THE UTILITY REFORM NETWORK: The money is spent on what they call higher priority work.

DAN SIMON, CNN CORRESPONDENT: And what was that?

FLORIO: Well, you can't track the dollars one by one but we do know that they spent $62 million more on management incentive bonuses than they had forecasted in 2009.

(END OF VIDEO CLIP)

PHILLIPS: And PG&E is looking for another rate hike to replace that pipe in 2013.

Here's the utility's response to all of this. "In this particular case, PG&E did identify this line section as being a high priority project. In its 2008 gas transmission rate case filing. Subsequent to that filing, PG&E performed an External Corrosions Direct Assessment in 2009.

"And based on the updated assessment and the assurance it provided us, we rescheduled the project accordingly. PG&E spent more on its gas transmission capital program than authorized for the period 2008- 2009."

Dallas police are seeking criminal charges against three of their own officers because of a beating caught on a police dash cam. It's started as a high-speed chase. You actually see the officers in hot pursuit of a motorcycle speeding through city streets. The police car bumper actually taps the motorcycle.

Police Chief David Brown says seconds later the video shows one officer hitting the suspect with a baton. Another uses his fists and knee. And that's just the part that we can see. A second dash cam was reportedly turned away during the incident.

The FBI is also conducting a civil rights investigation. The chase suspect is black. The accused officers are white. But the police chief says that he does not believe those officers were motivated by race.

Pope Benedict XVI admits failures in dealing with priests who raped and abused children. Now he's in the UK on a state visit. A trip that's parked outrage because of the scandal. We're live there right after the break.

(COMMERCIAL BREAK)

PHILLIPS: In perhaps the strongest admission yet, Pope Benedict says that the Catholic Church was not vigilant enough or fast enough in dealing with the priest/child sex abuse scandal.

Catholic News Service reports that the Pope made those onboard the papal plane en route to Britain.

The Pope apparently facing head-on one of the biggest controversies surrounding his visit to the UK. He arrived in Edinburgh today and was greeted by Prince Phillip. Then he sat down for a meeting with the Queen before traveling to Glasgow for an open air mass.

That's where we find our Phil Black now.

So, Phil, let's talk about the significance of these comments.

PHIL BLACK, CNN CORRESPONDENT: Yes, well, Kyra, this issue is easily the greatest source of anger among those who oppose the Pope's visit or who certainly oppose him receiving the full state honors that he's been receiving since his arrival here today.

He's spoken about this before but these comments would easily be among the strongest, the strongest language that he's ever used in describing the sadness that the church says it feels over these allegations. So it'll be interesting to see to what extent it diminishes or diffuses the rage, the unhappiness that is felt by many people here.

There will be protests against the Pope on this issue particularly once he gets to London. It's just a question of how big those protests will be.

PHILLIPS: He has met with sex abuse victims before. Do we know if he will meet with them this time around? And if so, would it even be made public? BLACK: Well, there's no official confirmation of this yet. The church says it simply doesn't talk about that in advance. But you're right, it's something that he's done on every other recent international visit including the United States.

It's broadly expected that yes, he will do this and the church will probably confirm it afterwards as another gesture of respect or sadness and contrition from the head of the Catholic Church.

But some abuse victims here have been very clear in saying they're not interested in hearing more talk from the Pope. What they want is action, action that would bring perpetrators to justice and would show greater support and understanding to the victims of child abuse in institutions run by the church around the world.

PHILLIPS: Well, we will definitely follow his visit. Phil Black, thanks so much.

And the cases of priest sex abuse against children stretches back decades all over the world. The pain and suffering it cost is just immeasurable.

ITN's Penny Marshall has the story of one British man who's actually looking for justice and an apology.

(BEGIN VIDEOTAPE)

GRAHAM BAVERSTOCK, VICTIM OF ABUSE AS A CHILD: No, it was the first time I've been back in 38, 39 years.

PENNY MARSHALL, ITN REPORTER: Graham Baverstock is returning to the place where his childhood and he believes his life was ruined.

BAVERSTOCK: I feel emotional. That is something that I have to do. I want the people in the world to know how we suffered at the hands of the abusers.

MARSHALL: Those abusers were running a Catholic children's home here and when Graham last came to these outbuildings in 1970, he was a 14- year-old able-bodied schoolboy in their care.

BAVERSTOCK: My memories of this place will haunt me until I die. I had to come back here today not just for me but for all the other damaged children.

MARSHALL: Graham is one of 155 men now suing the church for the trauma and the cruelty they suffered in the largest civil case of this kind in England. Graham believes the abusers ruined not just his own life but that of hundreds of other boys.

Now 52 and seriously ill, Graham wants resolution and retribution. He and his fellow abuse survivors have been fighting this case for six years and never had an apology.

BAVERSTOCK: In my book, the Catholic Church are the most dishonest organization that I've ever come across in my life. They are making the suffering of these children tenfold more than if they recognize the damage they have done.

This is him. James Carragher. So smart. So sophisticated. And yet the biggest abuser of children.

MARSHALL: James Carragher is now in jail for multiple rape. The children's home he ran, St. Williams, catered for particularly vulnerable boys.

BAVERSTOCK: A cute little baby but look at the wheelchair. Look at the push chair.

MARSHALL: Boys like Graham who was abandoned by his mother when just a few days old, ending up as a teenager in the care of the church, a church who failed him then and had never said sorry.

BAVERSTOCK: I do not believe they were ever accepted responsibility. And as a message for the Pope, as long as I live, I will haunt you. Because we are haunted by a system which abused us, tortured us and annihilated all ethos of life.

MARSHALL: Graham's past is full of sadness. His present is consumed by this fight for justice. His only hope for the future is an apology.

(END VIDEOTAPE)

PHILLIPS: We are still waiting to hear if and when Pope Benedict will hold private meetings with the victims of sexual abuse. As Phil Black told us, the Vatican is believed to be arranging those meetings, but so far, it hasn't happened.

(COMMERCIAL BREAK)

PHILLIPS: Checking top stories now. Thirty-one House Democrats are defying their leadership over a plan to let tax cuts for the wealthy expire at the end of the year. President Obama and party leaders only want to extend middle class cuts.

California governor Arnold Schwarzenegger requesting a federal disaster declaration to help cover costs in San Bruno. Four people were killed in last week's gas pipeline explosion and fire.

The Iowa egg farm at the center of this summer's massive recall has had previous problems. Congressional investigators say hundreds of cases of salmonella contamination were found in a two-year period.

Sex for sale online. Our own Amber Lyon has documented it. Now, Craigslist is promising lawmakers it will clean up its act. We're taking a look at what's being done now, and whether it take makes a difference in the underworld of online sex trafficking.

(COMMERCIAL BREAK)

PHILLIPS: An anti-human trafficking group calls Craigslist the Wal-Mart of the online sex trade. But now the website is going clean. The controversial adult services section is gone for good. And that's according to a Craigslist official speaking at a House hearing. CNN's Amber Lyon was there.

AMBER LYON, CNN CORRESPONDENT: Though they were invited to the hearing, Craigslist CEO Jim Buckmaster and founder Craig Newmark did not attend. But they did send a representative from the site to testify before Congress, and he said Craigslist has no intentions of reopening the adult services section.

Now, House members wanted to make sure that this was a permanent decision, and they drilled this guy about it. Take a look.

(BEGIN VIDEO CLIP)

REP. SHELIA JACKSON LEE (D), TEXAS: No amount of money is going to cause Craigslist to re-institute in another name this kind of site?

WILLIAM "CLINT" POWELL, CRAIGSLIST: I can't answer that directly, because I'm not directly involved with the decision-making process for that.

LEE: I've already given you compliments for being a standard bearer for change, but now I'm hearing that it might come back again.

POWELL: No, no. What I'm saying is that we do not have any intention to bring that category back, and that money is not a consideration.

(END VIDEO CLIP)

LYON: Law enforcement and advocates say that Craigslist has been more active in fighting sex trafficking on its site than other sites where these types of ads have been found now. Advocacy groups and attorneys general say that they focused on Craigslist because that sight was, quote, "the 800-pound gorilla" when it came to this issue. They now say they're going to expand their focus and go after these other sites, as well. Amber Lyon, CNN, Washington.

PHILLIPS: All right. Check this out. Severe hailstorm caught on tape in south central Kansas. Brandon Ivey had his camera rolling as baseball-sized hail pelted his windshield. Later, he actually captured tornadoes sweeping the ground nearby. That strong storm actually toppled a tree and a utility pole, blew trash into the highway. Thank goodness, no injuries were reported.

There's always someone, Rob, out there with a camera to capture these crazy events.

ROB MARCIANO, AMS METEOROLOGIST: Listen, there's money to be made in that, you know? You get a nice piece of video and you farm it out to various media outlets.

PHILLIPS: Make some bucks --

(CROSSTALK)

MARCIANO: Yes, that's right. Listen, I love capitalism.

PHILLIPS: For being crazy. And dangerous.

MARCIANO: Exactly. A little adrenaline-filled capitalism there.

Listen, that storm system, Kyra, is heading to the east just a little bit now, and this is where you kind of see that comma shape. This is a fairly potent low for this time of year, and folks who live in Louisville, back through Columbus, you may see more active weather throughout the day today. I think that some of the storms re-fire through the afternoon as this cool front passes down to the south and east.

This cool front back here, that's actually going to bring some even cooler weather. We're starting to see, now, the changes of the season, and temperatures will start to feel a little bit more like -- well, like fall.

Fall is also hurricane season. And this is what's going on with Karl. Tropical Storm Karl, 65 miles an hour are the winds right now, and with that, it's moving off to the west at about eight or nine miles an hour. It cruised through the Yucatan, as you can see, and now into the Bay of Campeche. And with this, we do expect it to strengthen to hurricane status and maybe even get to, you know, stronger than One.

Right now, the forecast from the National Hurricane Center is thinking a Category 1 getting to the shoreline of northern Mexico tomorrow night. They'll start feeling the effects as soon as tomorrow afternoon, and then cruising through northern Mexico. We probably won't see much of an effect in through south Texas. Might get a little bit of rain. I know you don't need it, but right now we're not thinking it should affect you too much.

Meanwhile, Igor is still a Category 4 storm. Julia, a Category 2. Here's a 4. Here's a 2. Julia's not going to be a problem at all, but Igor is going to be a bit of an issue, I think. I think we're going to see Igor get up towards Bermuda.

And it's a small island. If this thing tracks either side of it by 50 or 100 miles, that will be a lifesaver. And we certainly hope that happens, but right now most of the computer models are tracking Bermuda to -- or tracking Igor to get to Bermuda sometime during the day on Sunday as a potentially still a Category 2 storm. So that's going to be--

PHILLIPS: Coming over to my world over here.

MARCIANO: Yes. I hear you have fun video that involves one of my favorite sports.

PHILLIPS: You're a baseball fan.

MARCIANO: Absolutely.

PHILLIPS: Do you have peanuts at the game?

MARCIANO: Oh, of course. PHILLIPS: All the time?

MARCIANO: Absolutely.

PHILLIPS: What do you think of a peanut-free zone?

MARCIANO: Like a smoke-free zone?

PHILLIPS: Exactly.

MARCIANO: Who's instituting that?

PHILLIPS: Well, you know. It's peanut allergies, the serious thing with kids, right?

MARCIANO: Oh, oh, right. OK. Yes.

PHILLIPS: But what do you think? Peanut-free zone. That's actually what the Cleveland Indians are going to try out. Do you think it's fair?

MARCIANO: Well, why not? I mean --

PHILLIPS: That's true.

MARCIANO: You've got to take care of the kids.

PHLLIPS: It's serious stuff, right?

MARCIANO: Yes.

PHILLIPS: Kids with peanut allergies actually doubled, I guess, between '97 and 2002. But I didn't know you could actually -- the smell could actually cause a violent reaction.

MARCIANO: Plus, you know, what do you do with the shells? You just throw them on the ground.

PHILLIPS: That's a good point.

MARCIANO: So, they're rolling --

PHILLIPS: You throw them back into the non-peanut-free zone.

MARCIANO: So --

PHILLIPS: Just to get back at people.

MARCIANO: I support that, as long as the peanut-free zone is relatively small.

PHILLIPS: I think it'd be an obnoxious fan-free zone. No, wait.

MARCIANO: You might have a hard time --

PHILLIPS: You'd be in trouble. (LAUGHTER)

MARCIANO: Yes, exactly. I'd never be able to go to the game.

PHILLIPS: You love screaming at the players. All right, we'll see how it goes. We'll see if it works and if anybody complains. But you're right, got to have peanuts at the ball game.

MARCIANO: Yes, and it's a great time of year. Pennant races are in full bloom. It's a good time to be a baseball fan.

PHILLIPS: All right, talk to you in a little bit.

MARCIANO: Sounds good.

PHILLIPS: Thanks, Rob.

MARCIANO: You bet.

PHILLIPS: Millions of Americans saw the civil rights movement through his eyes. But today's focus is what on photographer Earnest Withers said. We're going to look into reports that this trusted member of MLK's inner circle was actually an FBI informant.

(COMMERCIAL BREAK)

PHILLIPS: Wall Street investors digging into the latest numbers on weekly jobless claims. Alison Kosik at the New York Stock Exchange with a closer look at those numbers and what else may move the market today. Hey, Alison.

ALISON KOSIK: Hi, Kyra, good morning to you. We are looking at a weaker start for Wall Street today. That's despite another small decline in weekly jobless claims. So at least we're going in the right direction. But Wall Street not too thrilled about it as of yet.

The number of people filing for new unemployment benefits fell by 3,000 to 450,000 last week. That's actually the lowest level in two months. But, you know, trouble is, we've been in that tight range for a while, and most here on Wall Street are saying, "Call me when we get below 400,000."

Fed-Ex is getting ready to add to the unemployment pain. The company announced it's going to let go of 1700 workers in an effort to consolidate some of its operations. The company says it's seeing moderate growth, but its earnings missed estimates. It says international shipping is growing, but domestic shipments are lagging. Investors often view Fed-Ex's earnings as an economic indicator because of the variety of businesses that it serves.

On the other hand, Boeing says the airline industry is going to need more than a million new workers over the next 20 years. Only about 150,000 of those will be North American workers, however.

All right, the opening bell is just about to ring, but let me tell you this. How's this for an economic indicator, Kyra? Fox has reportedly sold 90 percent of the ad time available for this season's Super Bowl in Dallas. The average price for a 30-second ad, about 3 million bucks. Recession? What recession, right?

PHILLIPS: Yes.

KOSIK: That's a lot a lot of money for a 30 seconds.

PHILLIPS: It is amazing and we talk about it every year. We always wait for those Super Bowl commercials to see how creative or not creative --

KOSIK: And they're fun to watch but that's a lot of money. Come on.

PHILLIPS: Heck yes. A lot of people watching, too.

KOSIK: Yes. I guess, the reach is far.

Let me tell you the market's doing. We are down across the board, Kyra.

PHILLIPS: All right. We'll keep watching it.

Thanks so much, Alison.

KOSIK: Thanks.

PHILLIPS: A photographer who was part of the Martin Luther King's inner circle may have lived a double life spilling secrets to the FBI about the inner workings of the civil rights movement. And if you don't know the name Earnest Withers you definitely know his photos.

He captured bus segregation, school integration, strikes, he was even in Dr. King's hotel room just hours after he was assassinated. But that legacy may come with a footnote. A Memphis commercial appeal calls Withers a super informant, one who reportedly spilled details about rallies, disclosed the ideals of leaders, even jotted down license numbers. The papers says it identified Withers in FBI documents by his informant number. ME-338-R.

His daughter Rosalyn says she just doesn't buy it.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: We as a family none of us heard anything like that. We don't believe it. I think the whole thing is based on one thing which is a number. And we know that number was assigned to him. Where's the proof of that? You know, it's -- is that number only assigned to an individual or is it assigned to a project? So it's just so many speculations.

(END VIDEO CLIP)

PHILLIPS: Anthan Theoharis is a historian at Marquette University and an author of several books about spying. He's joining me live from Milwaukee.

So Anthan, you've actually studied these documents and you've called this a, quote, "an amazing betrayal." Why?

ANTHAN THEOHARIS, MARQUETTE UNIVERSITY: Well, because, he was so trusted and he had access to individuals within the civil rights movement and as a photographer he was taking photos and passing the photos on to the FBI.

PHILLIPS: Well, some would say wasn't this a good thing? Wouldn't this be because the FBI wanted to monitor the civil rights movement and possibly keep it safe?

THEOHARIS: Well, no. I mean, what the bureau was doing, and interested in Withers because of his access, is understanding the plans and tactics of individuals engaged in political activities or seeking to change public policy. Which was legitimate and violated no federal law.

PHILLIPS: Do you believe that there were intentions to knock down the civil rights movement and that they sort of got Withers a part of this to help them bring it down?

THEOHARIS: Well, the bureau did have a formal program instituted in the 1960s, a purpose which was to discredit targeted organizations. And what they did is they sought information, derogatory, political, and personal information which they either leaked to members of the media, or used to sew dissension within the organization as a means of limiting their influence. So it was a political containment effort they bureau officials were engaged in and Withers assisted that effort.

PHILLIPS: Here's what's interesting. Civil rights leader Andrew Young still lives here in Atlanta, Georgia. He was side by side with Withers many a times through the civil rights movement and he disagrees that this was a betrayal in any way.

Take a listen to what he told us.

(BEGIN VIDEO CLIP)

ANDREW YOUNG, FORMER ATLANTA MAYOR: You have to understand that our movement was designed to be totally transparent. He was our voice to the world.

RICK SANCHEZ, CNN HOST, "RICK'S LIST": But if he was that much of a trusted friend why wouldn't you expect him to say to you, by the way, guys, with a wink and a nod, Andy, you know what, I'm going to keep doing this, but I'm working for the FBI? Why wouldn't you expect him to be straight with you and Dr. King?

YOUNG: Because it wasn't that important to us.

SANCHEZ: How could it not be important to you, Andrew?

YOUNG: I don't know why it needed to be. We knew we were trying to change America. We knew our instructions from our lawyers were for us to inform the FBI and the Justice Department of everything we did before we did it. We had no secrets.

(END VIDEO CLIP)

PHILLIPS: We had no secrets. What do you make of that?

Was there a point to spying on civil rights leaders?

THEOHARIS: Yes, there was because it gave bureau officials advanced information about the plans, individuals, who were involved in the activities themselves. And Withers also passed on personal information about the use of expletives, or participation in drugs, or elicit sexual activity so it wasn't an innocent operating that Withers was engaged in or that what the bureau was engaged in at the time.

PHILLIPS: Why do you think Withers would have done this?

THEOHARIS: We'd be able to answer that conclusively if we had access to Wither's informant file, which the bureau has not released. It would then note how much he was paid, the duration for which he was an informant, and how it was they convinced him to act as an informant.

I suspect, if I can offer speculation, is that he was concerned about radical influence in the civil rights movement and was concerned that it might have adverse impact on public opinion. But that's just speculation.

PHILLIPS: So he could have maybe done it - I mean, he had eight children, he could have done it, right, for the money. But do you think that maybe the FBI convinced him to do it saying, hey, you're going to help keep MLK alive, you're going to help make sure that this, you know, goes down safely if you give us information?

THEOHARIS: Well, not keep MLK alive, in a sense not result in a negative press that would influence the ability of the SCLC and civil rights activists to change policy. The bureau willing to pay because informants because it compromised them so. So that whether or not he did it for the money, after he received the money, it made it very hard for him not to continue to assist the bureau. He not only volunteered information but responded to requests for information. So he was a very valued asset for the bureau.

PHILLIPS: Do you think he put his life in danger by doing this?

THEOHARIS: No, he didn't, because the FBI took safeguards to guard against discovery, which is the irony of our ability to identify Withers. Because that they don't do in the reports is give the name of the informant. They assign informants symbol numbers. A symbol consists of the acronym of the field office in this case, ME, and then the number, 338. And the "R", he was a racial informant. So that if you obtained an FBI report, you wouldn't know the source of the information.

Ironically, in this case, if FBI bi inadvertently gave both Withers his name and his informant number, which is how we were able to identify him as the informant.

PHILLIPS: Well it's a pretty fascinating revelation. Anthan Theoharis, Marquette University.

I appreciate your joining us and talking to us about this.

THEOHARIS: Thank you. It's great to talk with you.

PHILLIPS: Likewise.

Still ahead, the latest news crossing our political ticker. Embracing gay Republicans. We're going to tell you why one GOP leader is ignoring conservative critics and reaching out to a growing force within the party.

(COMMERCIAL BREAK)

PHILLIPS: Checking top stories. Pope Benedict expressing sorrow over the Catholic Church's sex abuse scandal. Benedict says it's sad that the church wasn't vigilant or fast enough to respond to the problem. The Pope's comments comes as he begins a four-day visit to Britain.

In just a few minutes President Obama plans to announce new steps to increase U.S. exports. The president has a goal to double exports in five years, creating several million new jobs.

And the head of the National Black Farmers coming to Capitol Hill this morning on a tractor. John Boyd wants Congress to fund a $1.25 billion discrimination case settlement. Boyd named his tractor "Justice."

(COMMERCIAL BREAK)

PHILLIPS: Well, time now for the latest news from the Best Political Team on Television. Senior political editor Mark Preston in Washington, at the CNNPolitics.com desk.

So, what's crossing right now, Mark?

MARK PRESTON, CNN SENIOR POLITICAL EDITOR: Well, Kyra, you know, the dust has finally settled on the 2010 primary elections, right? Well, there was a lot of money spent specifically on television.

Let me give you some eye-popping numbers. I saw these numbers a few hours ago and said, my gosh, I can't believe that this much was spent. But in all $285 million, Kyra, spent on TV ads just in the primary season. To break down that macro number, about $134 million was spent by Democrats and Democratic allies. Another $150 million spent by Republicans and their allies. Of course, this number was influenced a little bit by that health care debate that we've followed for the past year and a half. But again, a huge amount spent so far in the primary. Probably only one quarter of what will be spent on the midterm elections. So, if you haven't seen a political ad yet, I'm sorry to tell all our viewers, you're going to see a lot.

Let's look at this story right here, too, Kyra, you teased it a little bit at the top. Despite pressure, GOP leader to -- hello? Kyra?

PHILLIPS: Yes. They weren't supposed to bring up my audio. That was a boo-boo. Sorry, Mark.

(LAUGHTER)

PRESTON: Live television. Wouldn't be any fun, Kyra, if it wasn't live television.

PHILLIPS: Talking to myself.

(LAUGHTER)

PRESTON: Well, look that the story right here. Despite pressure, GOP leader to attend fund-raiser for gay Republicans. Let me just give you a little snapshot on this and our viewers, please go to CNNpolitics.com. Check it out.

This is John Cornyn. He oversees campaign efforts for Senate Republicans, Kyra. Well, guess what? The Family Research Council, a social conservative organization has asked Cornyn not to attend the fundraiser for this gay Republican advocacy group. Cornyn sent a letter back last night to the Family Research Council and says, you know something, thanks for the letter, I'm still going to attend. Because even though I might not agree with the log cabin Republicans on social issues, I agree with them on fiscal issues and basically we need to be a big tent party. So check that story out on CNNpolitics.com.

And here's a little bit of a teaser on a story that I'm writing right now, Kyra. The last time you and I spoke was yesterday. I was on that "Fire Nancy Pelosi" bus. I spent a good chunk of time talking to Michael Steele just about everything; about politics, the midterms, his future and his relationship with President Obama. And we've talked a little bit about this in the past over the past couple of years, Michael Steele, Barack Obama, could they do something nonpolitical perhaps to help out the African-Americans, you know, young blacks, a future, to kind of show that, in fact, there could be a great future. So Michael Steele says that he is interested in doing that. He has a standing invitation out to President Obama to sit down and talk about that, maybe put aside politics -- Kyra.

PHILLIPS: Put aside politics? Michael Steele? Are you kidding me?

PRESTON: Well, Barack Obama, as well. Look, they're both politicians.

PHILLIPS: That's right. I think we'll hear a lot more in the coming days and months.

Mark, thanks so much.

PHILLIPS: We're going to have your next political update in just about an hour. And a reminder, for all the latest political news, go to web site CNNpolitics.com. But first, flashback. September 16th, 1925. A Blues legend was born on the Mississippi Delta. Of course, that would be the iconic blues B.B. King. His signature song, "The Thrill is Gone." Definitely among his best. His career as the kind of blues has spanned more than half a century and he's still performing today at the age of 85. Happy birthday, B.B.

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PHILLIPS: Oh, it's sad to say but we've got to take you back to Arlington National Cemetery for another story that should have never happened.

All summer long we've told you about dumped tombstone, mismarked graves and old maps that misled people locking for their fallen loved ones. A senate panel has claimed as many as 6,600 graves at Arlington might be marked wrong, not marked at all or mislabeled on the maps.

Now an Ohio couple heard about all of this and wondered if their son were buried in the wrong place in the grave that they would be visiting the rest of their days.

So they went to Arlington yesterday and had the Army actually exhume their son's body. Marine Private Heath Warner was killed in Iraq four years ago, he was only 19 years old. It turns out he was in the right place. Dad confirmed it when he saw the tattoo on the remains of his son's arm. So they have their peace of mind.

But what a price to pay? Having to revisit that pain and actually see their son's remains. It's an image you got to think will live with them the rest of their lives.

It's tough enough for the troops who survived war with Army suicide rates, they were on the rise, PTSD, drug abuse and troubles with VA hospitals. The very least the military can do is give our fallen heroes the respect and peace that they and their families deserve.

We're going to keep the pressure on Arlington to make good on its promise to make things right.

Well, we've got a lot of things going on in the CNN NEWSROOM. Let's check in with Pentagon correspondent Barbara Starr -- Barbara.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Good morning, Kyra.

Pornography at the Pentagon? Indeed. We'll have details of that coming up coming up at the top of the hour.

CAROL COSTELLO, CNN CORRESPONDENT: Well, I'm Carol Costello in Washington. Right now, it is a crime against the Catholic Church to ordain women as priests. But one group of women in Maryland they are not waiting. They are creating a shadow church. We'll have more on that story in the next hour.

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: I'm Elizabeth Cohen in Atlanta. How many Americans are living in poverty? How many don't have medical insurance? I'll have those new numbers at the top of the hour.

PHILLIPS: All right, thanks, ladies.

Also, ditch your dialect and land a job. That's the theory behind a new crop of accent reduction classes. But retaining your tongue in the name of getting hired has its critics. We're talking about it next hour in the CNN NEWSROOM.

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PHILLIPS: All right, the President of the United States right now stepping up to the mike there at the White House, talking about his new export initiative with the hope, of course, to create new jobs in this pretty brutal economy.

We're monitoring it for you and we'll dip in live as he makes his points.

All right, the first living Medal of Honor recipient since the Vietnam War says he only did what anyone else would have done but just listen to Staff Sergeant Salvatore Giunta's heroics.

While returning an intense enemy fire in Afghanistan, Giunta ran out to save one wounded soldier. Then he saw another wounded comrade being dragged away by two Taliban fighters. So he charged after them and killing one Taliban, wounding the other and then bringing his buddy back to safety. That soldier ultimately died.

Giunta will get his Medal of Honor in an upcoming White House ceremony and he just wishes he could share that with his brothers in arms.

(BEGIN VIDEO CLIP)

STAFF SGT. SALVATORE GIUNTA, U.S. ARMY: As far as emotions after finding out about that I -- that I'm going to receive the Medal of Honor, it's -- it's very -- it's bittersweet because it's such a huge, huge honor. And right now the 173rd is deployed, and they are doing the same thing they did, everything that's asked for them in Afghanistan all over again. And that's where a lot of my friends are right now.

So for me to -- to fully, you know, accept this, I have to have everyone who has been by me every time I needed them. And that's really my brothers in arms. And some of them are out in the Army now and some of them are in Afghanistan now.

And it's -- it's emotional, and it's great. All -- all of this is great, but it does bring back, then, a lot of -- a lot of memories of all of the people that I would love to share this moment with. And I'm just not going to have that opportunity because they're no longer with us, and they gave everything for their country. And in doing that, we're not going to be able to enjoy this together.

(END VIDEO CLIP)

PHILLIPS: Well, Giunta is now based in Italy. His wife who appeared with him in that interview says that she hopes he doesn't have to deploy again to a war zone.

Six World War II POW's say that they worked like slaves, barely fed and watched -- were forced rather to watch executions. Now those vets have come back to Japan and all they want is an apology.

CNN's Kyung Lah reports from Tokyo.

(BEGIN VIDEOTAPE)

KYUNG LAH, CNN INTERNATIONAL CORRESPONDENT (voice-over): The final days of World War II. Japan had surrendered. America's prisoners of war finally free.

Earl Szwabo was 17 when was captured, held for almost four years in a Japanese prison camp, worked nearly to death, weighing only 70 pounds.

EARL SZWABO, WORLD WAR II POW: They made us all get out of our barracks and watch them shoot the six prisoners. I can't forget all these different things because I've seen a lot of atrocities.

LAH: Joseph Alexander was just a boy who snuck into the military at age 14, a year later he was America's youngest POW in World War II. What he has wanted all of these decades is a face-to-face apology.

JOSEPH ALEXANDER, WORLD WAR II POW: It would give us satisfaction. I mean that's what we want.

LAH: Sixty-five years later, the horrors remain, and what these six American POWs have come to reconcile in the country that once imprisoned them. The very first American World War II prisoners invited by the government of Japan for a peace visit.

LESTER TENNEY, WORLD WAR II POW: We are between 90 and 92. I'm going on 91.

LAH: Lester Tenney (ph) was a radio operator for the U.S. Army when he was captured. He survived what's known as the Bataan Death March. Thousands died on that 86-mile march at the hands of the Japanese military. Now, shaking hands with Japanese military leaders, Tenney shared a long-awaited message.

TENNEY: Our needs are simple. We never asked for much. The biggest thing we've asked for is recognition that we exist.

LAH: An apology from Japan's foreign minister who called their imprisonment inhuman treatment.

Much has changed in 65 years. This former POW camp now a modern day company, this is a factory that produces chemicals. The United States and Japan close allies for more than 50 years. But after all this time, the American veterans say what they need and the reason why they're here is some sort of official acknowledgement of what they went through as POWs here in Japan.

ED JACKFORT, WORLD WAR II POW: I came here for a purpose.

LAH: That purpose says Edward Jackfort hear from the management of the company where he was a slave laborer, a meeting that the company would allow us to attend but one that Jackfort says is decades overdue.

JACKFORT: If all of the other companies would do the same, it would make such a big difference to us, to know that they acknowledge that what they did was wrong, and perhaps it would make it easier on everybody.

LAH: They did acknowledge that to you?

JACKFORT: Yes. Right.

LAH: 65 years after the war's end, some small piece for those who paid an enormous price.

SZWABO: War is no good. I mean it's no good for nobody. There's losers on both sides. I think it's time for us to forgive and forget.

LAH: Kyung Lah, CNN, Tokyo.

(END VIDEOTAPE)