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ERIN BURNETT OUTFRONT

Protesters Gathering Against Donald Trump; Clerical Error By FBI Allowed Church Shooter To Buy Gun; Officials Baffled By "Baby Doe" Case. Aired 7-8:00p ET

Aired July 10, 2015 - 19:00   ET

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


[19:00:09] ERIN BURNETT, CNN ANCHOR: OUTFRONT tonight, protesters gathering at this moment, railing against Donald Trump. The presidential candidate about to come face to face with the demonstrators this hour. We are live in downtown L.A.

Plus, the FBI's deadly error. Officials today admitting that Dylann Roof, who confessed to killing nine people at a black church in Charleston, never should have been able to buy a gun. How did the FBI fail so miserably?

And 50 million views of this image and no one knows who this child is. The mystery of Baby Doe tonight. Let's go OUTFRONT.

And good evening. I'm Erin Burnett. OUTFRONT tonight on this Friday, Donald Trump facing off against protesters. Protesters incensed over Trump's remarks about Mexicans gathering at this moment outside a downtown Los Angeles hotel. Gearing up for a major demonstration tonight. Trump himself about to speak at that hotel. It's called the dump Trump event. And Spanish radio and TV stations have been calling for protests all week. They are lashing out. Thanks to Trump's comments about Mexicans immigrants calling some of them criminals and rapists. The demonstrators are equipped with Donald Trump pinatas like the ones you see here. They have the hair, right? They filled them with trash, which they say represents his trash talk. These pinatas, we can report from our reporters on the ground, are apparently selling for $150 each.

Kyung Lah is OUTFRONT tonight on a scene in Los Angeles. And Kyung, major crowds are expected where you are tonight.

KYUNG LAH, CNN CORRESPONDENT: Well, they are expected. They are predicted. It's quite a small gathering. We're at this corner just outside the Luxe Hotel, this is in Brentwood. Now, I want you to walk down with me here around the corner. You can see that there are people starting to gather. We have a very small crowd. And they are carrying what you might expect to be very typical signs. They clearly have a message to send to Donald Trump as he comes to speak here. This is being organized by a conservative group called Friends of Abe. They describe themselves Erin, as the one conservative group in the entertainment industry. Donald Trump scheduled to arrive here in about an hour. These people are out here though. This is a grass- roots organization, because they want him to know as he pulls up to this hotel that the immigrant rights groups here in Los Angeles object to what he has been saying for this past week -- Erin. BURNETT: And Kyung, you know, obviously, despite the protests

and companies pulling their support, Donald Trump is standing firm for what he believes in. He is doubling down on those comments.

LAH: He is absolutely. And he is actually getting some support from at least one family group. We understand that there may be other family members who are meeting him. These are family members of victims. There is one in particular, a high-profile case from 2008 Jamiel Shaw. He was a 17-year-old football standout. He was shot twice by an undocumented immigrant of known gang member who just one day earlier had been released from prison. He walked out on the street and then shot this teenager because he was carrying a Spiderman backpack, apparently a case of confusing him for a rival gang. And so all of this is certainly fuel to Trump's fire. He plans on having a media availability with this family and others to remind people that this isn't just a made-up issue from his perspective.

(BEGIN VIDEO CLIP)

JAMIEL SHAW, FATHER OF SHOOTING VICTIM: If he can talk the way he is talking, then I owe him, you know, some trust to say, well, you know, you can steer the boat so to speak. You know what I mean? Let's see what you can do. Who else is doing it? You know what I mean? Come on! Who else is doing it? You know, we're not going to get nobody else out there that's talking like that.

(END VIDEO CLIP)

BURNETT: All right. Well, thanks to you Kyung. And Kyung is going to be there on the scene for us as we said, as these protesters scheduled to get into full swing in just the next few minutes. We will be going back there live.

And now our other top story of the night, a stunning failure by the FBI. The agency admitting tonight that Dylann Roof, the man charged with murdering nine people at an historic black church in Charleston should never have been able to buy that gun. The problem was a delay during Roof's background check. News of this horrific mistake comes at the same day the confederate flag, it's symbol admired by the self-confessed killer, was removed from South Carolina's capitol grounds.

Nick Valencia is OUTFRONT live in Columbia, South Carolina. And Nick, I mean, this is a stunning admission by the FBI. How are they explaining this?

[19:05:11] NICK VALENCIA, CNN CORRESPONDENT: Deadly errors. A series of mistakes. A clerical error Erin that led to Dylann Roof, the 21-year-old gunman in the Charleston church shooting, the historic AME church that carried out that massacre, that eventually led him to getting his hands on that 45-caliber handgun that he used in the attack. What we are hearing from our sources at CNN is that the agent looking into his background doing the background check for Dylann Roof was unable to determine whether or not he had been convicted of his arrests. They were also unable to determine in fact where that county was that he was arrested. And that's how eventually he got his hands on that gun -- Erin.

BURNETT: I mean, it's pretty incredible, Nick. Because I guess the bottom-line here is they are saying this was a clerical error. I mean, that's outrageous that the FBI could commit a clerical error that results in a massacre of nine innocent people.

VALENCIA: And those who we have spoken to here in Columbia, the capital of South Carolina, are saddened, they are angered, they are disappointed. They hope that this isn't a normal procedure and that this doesn't happen more often. The FBI agents were told -- have met with the families of the victims of that historic AME church shooting. We're also told that the FBI director is launching an internal investigation that will be concluded in 30 days. To investigate how the process goes about, they are hoping that they can fix this. And they hope that there are not more cases like this out there -- Erin.

BURNETT: All right. Thank you very much, Nick.

And OUTFRONT now, Harrison Rearden, a friend of one of the victims. The Reverend Daniel Simmons, Sr., he also spoke at his funeral. And Harrison, you knew Reverend Simmons for more than 40 years. You were his son's godfather. This was a dear dear man to you. What goes through your head when you hear the news tonight that Dylan Roof shouldn't have been able to buy this gun, the gun that he used to kill your friend?

HARRISON REARDEN, FRIEND OF CHARLESTON CHURCH MASSACRE VICTIM: I am really shocked at the news that I have heard today. To be very honest with you, I did not hear this before today. And I really can't authenticate it. But it's shocking to me.

BURNETT: The head of the FBI, Harrison, apologizing. The quote that he said was, "this rips all of our hearts out." And he continued to say, quote, "We're all sick this happened." I'm sure he does feel that way. But is that enough?

REARDEN: Well, if the FBI is apologetic and contrite, that's one thing. But I would rather not get deeper into this because obviously it's going to be investigated. And I don't have the facts on that, as I said, again, I didn't hear about it until today.

BURNETT: Well, I know, Harrison, you said you are shocked at the news. And I think all Americans watching are shocked at this news.

REARDEN: Yes.

BURNETT: For you though, of course, it's deeply personal. And being from South Carolina, what happened today is deeply personal with the flag. We all watched that confederate flag come down this morning. It's a powerful symbol.

REARDEN: Yes.

BURNETT: It's gone.

REARDEN: This has been a great -- this has been a great day in South Carolina. It's a pivotal point for us. Meaning, we can turn the corner if our hearts point in that direction. We still have lots of work to be done. And we are at a point now where we need to get about correcting the ills of the past. I must tell you though that no matter what comes out of this in terms of the turnaround, this is personal with me, because I knew personally two of the nine and particularly one of the nine who happened to have been a next door neighbor of mine. So, it's personal with me. But we will get through it with the help of God and our neighbors.

BURNETT: All right. Well, Harrison, I appreciate you taking the time, sir. Our condolences in the loss of your dear friend.

REARDEN: Thank you.

BURNETT: And Chris Swecker is a former assistant director for the FBI's criminal investigative division. Also for a brief time oversaw the division that okays gun purchases. Chris, you just Harrison Rearden. And, you know, he lost his dear friend in this horrific event. He is shocked at the news that Dylann Roof shouldn't have had this gun. Does it shock you?

CHRIS SWECKER, FORMER ASSISTANT FBI DIRECTOR: Well, it's tragic. But it's not surprising, really. There are a lot of holes in the NIC system, the National Instant Check System. Dispositions which are the results of the case beyond the arrest are often not entered into the system. So, really, this was a series of errors, this wasn't just one thing.

BURNETT: But it sounds like a lot of clerical errors, a lot of human error went into this?

SWECKER: Very much so. One, the arresting officer in the prosecutor's office didn't enter the disposition of the case. Number two, the analyst sitting at their desk in West Virginia when it became a manual process to try to do the research got confused about the counties. Couldn't get the information right. So, there's a whole series of things that just went wrong here. This was the perfect storm.

[19:10:12] BURNETT: And the FBI director now James Comey, you know, talked about these clerical errors that you're mentioning today. Basically, they didn't see that Roof had been arrested for drugs. They didn't see that. But that alone -- I mean, this is what is so horrible about this. That alone would have barred him from buying the gun. And I mean, he used that gun to slaughter nine innocent people. I mean, just on a crucial level here, how can that happen? How can the system be this flawed?

SWECKER: Well, in this case, the arrest record was there. The law doesn't prohibit possessing a gun if you just have been arrested. There needs to be a conviction or at least an admission of the crime itself.

BURNETT: Right.

SWECKER: And so she saw that. But apparently she wasn't able to get to the right person to find out exactly what happened with the case. And that's where the breakdown went. And it shouldn't go manual like this. The system needs to be automated all the way through the whole process.

BURNETT: All right. Well, Chris, I very much appreciate your time. Thank you. Chris Wecker as we said, former assistant director for the FBI criminal investigative division.

Next tonight. No one coming forward to claim Baby Doe. Even though 50 million people had seen the picture on your screen. Who is Baby Doe?

Plus, we go live to Los Angeles. Protesters there gathering. Donald Trump pinatas in hand for the dump Trump protest. Trump himself about to appear. So, we will going to go there live.

And an historic day in South Carolina with that battle flag lowered for the last time.

Ahead, Don Lemon's emotional interview with Governor Nikki Haley.

(COMMERCIAL BREAK)

[19:15:18] BURNETT: And now the picture that has moved millions. The face of mystery. The face of Baby Doe. More than 50 million people have now shared this picture. It's a computer generated image of a young girl about four-years-old found dead in a plastic bag on a beach in Boston Harbor. So far, authorities have no idea who killed her.

Boris Sanchez is OUTFRONT tonight on Deer Island where Baby Doe was found.

(BEGIN VIDEOTAPE)

BORIS SANCHEZ, CNN CORRESPONDENT (voice-over): A gruesome discovery on a remote beach of Deer Island overlooking Boston Harbor. A child, a victim, without a name. For more than two weeks, Massachusetts state police have been trying to identify the little girl now known as Baby Doe. Authorities circulating this computer generated image, hoping for a break in the case. But even after being viewed more than $51 million times on Facebook, Baby Doe's identity remains unknown.

ELLEN BONILA, LOCAL RESIDENT: I think it's very sad. It's horrific. You know, it's a little child.

SANCHEZ: Alan Bonila watch this stretch of beach almost every day.

BONILA: We live for our children. I have kids. I have grandchildren. We live for our kids. And for someone to just throw this innocent little child, you know, out like trash, it's awful. It's heartbreaking.

SANCHEZ: Other than a water treatment plant, there isn't much to be found on Deer Island. Baby Doe was discovered in a trash bag by a dog walker. The young girl believed to be no older than four. About three-and-a-half feet tall weighing 30 pounds, found wearing polka dot leggings, covered in a zebra print blanket. Investigators are chasing hundreds of leads, including potential links to several high-profile missing children's cases. But there is little to go on.

DAN CONLEY, SUFFOLK COUNTY DA: If you are the parent or caregiver of this young girl, please step forward. Clear your conscience. And help us identify this young child.

DR. JACK LEVIN, NORTHEASTERN UNIVERSITY CRIMINOLOGIST: You know, this is not as unusual as you might think. There are hundreds of thousands of children, including young children, under the age of five, who are missing, who are abducted. Usually not by strangers. Actually, more than half of all homicides against children are committed by their own parents.

SANCHEZ: Criminologist Dr. Jack Levin says someone close to Baby Doe likely knows what happened to her. The bad person may not be anywhere close to the shore where she was found.

DR. JACK LEVIN, NORTHEASTERN UNIVERSITY CRIMINOLOGIST: I think it's much more likely that she comes from a great distance away. If she had been in in proximity to Deer Island, someone would by this time have known that she was missing.

(END VIDEOTAPE)

SANCHEZ: Erin, investigators say, it's very likely that she floated here. They are not ruling out the possibility that she may have come from Canada, potentially even as far away as Latin America.

BURNETT: All right. Boris, thank you very much. Boris Sanchez as we said live from the scene outside Boston.

And OUTFRONT now, Arthur Roderick, former assistant director of the U.S. marshal service. And Paul Callan, former New York City homicide prosecutor and defense attorney.

All right. Paul, let me start with you, more than 50 million people have looked at this picture. A beautiful, adorable little girl. We'll show it to people again. Computer generated image. I want to emphasize that. This is not a picture, everybody. This is a computer generated image. They found the child, just be graphic here, but direct, in a garbage bag starting to decompose. This picture though looks so real. Is that a good thing or is it misleading?

PAUL CALLAN, CRIMINAL DEFENSE ATTORNEY: I think it's -- I'm troubled by it. I mean, it was produced by the Center for Missing and Exploited Children. And they have had a very very good track record of getting children back, missing children. And they say that their computer-generated images are very accurate. When I saw this in the newspaper, I assumed that --

BURNETT: It was a photo.

CALLAN: It was a photo.

BURNETT: I think most people do assume that.

CALLAN: You assume that it's totally accurate.

BURNETT: Right.

CALLAN: And as opposed to a police sketch which we're kind of used to seeing where you say, well, that kind of looks like the person. And I think when you see this exactness in the photo, it's going to make people think, she looks exactly like that. And I don't think she does. This is made by a computer which is estimating bone size and what the hair looked like.

BURNETT: You are asking people to use their imagination to find somebody who doesn't quite look like this. And that's really hard to do.

CALLAN: But this is such a beautiful looking baby. You would look at this picture and it would be locked in your mind. Could you use your imagination and picture something slightly different? I don't know that it's helpful.

BURNETT: Art, you know, you have spent a career tracking down people -- down killers. I mean, what do you make of the fact that no one has come forward so far with any information about who she is?

ARTHUR RODERICK, RETIRED U.S. MARSHAL: Yes. It's very disheartening, Erin. I have to tell you, I'm from Massachusetts. And I talked to my family. And I talked to my law enforcement friends up there. And obviously, this is right on forefront of everybody's mind. And I agree with, you know, the picture could throw a lot of people off. Because those pictures, when you look at the -- it's amazing the database that they use. But it's actually based on what information you are inputting. And because we have no background on this particular child --

BURNETT: Right.

RODERICK: It's hard to put anything in there and work from ground zero as opposed to knowing who the family was, having family photos. So, if nobody has come forward at this point until they get an identification on this child, this case could go cold very quickly.

[19:20:35] BURNETT: Right. And of course, there are some things, you know, that child looks so rosy and healthy.

RODERICK: Right.

BURNETT: They say four-years-old and 30 pounds. That would be pretty malnourished four-year-old. I mean, that image may not be accurate in many of the things that it's portraying. I mean, Art, do you think they will going to be able to find the person who is responsible for this? I mean, this child was put in a garbage bag, disposed on this remote island. RODERICK: Right. Obviously, horrible, horrible case. And when

I first heard about this case, I immediately thought that this child could have been a victim of human trafficking or a victim of a sexual predator. So, I would -- they are probably doing this at this point in time. Start checking with all the registered sex offenders in the greater Boston area and make sure that their time has been accounted for over the past couple of weeks.

BURNETT: That's horrible to imagine. Paul, how much can the forensics actually tell them about how she died? To the point Art is making, whether there was a sexual predator involved. Anything like that. Any information at this point.

CALLAN: The forensics can tell a lot. Because they can get DNA. They will get bone samples, they'll have hair samples. There's probably fabric involved. All of that will tell part of the story. But the question is, is there DNA in the database to match her to somebody, to link her to a community or to a family? That's the hard part. So, you might be able to find out a lot about her background, maybe what her ethnic group was, how large she was, what she probably looked like. But who is her mom and who is her dad? And where are the mother and father?

BURNETT: Right. Who have not come forward. I mean, in Art's point, human trafficking I guess could be involved. I mean, Art, is there any chance foul play wasn't involved? I mean, you know, to me, you find a child in a garbage bag disposed in a remote island, in a dumpster, it's clear it's foul play. But it might not be?

RODERICK: I mean, it's obviously foul play. I mean, when you look at something like this, just disposing of a body in that particular manner is a crime.

BURNETT: Right.

RODERICK: So, I mean, I would have to assume there's foul play. But I think the autopsy will show hopefully exactly what happened to this child. But it will also show whether she was malnourished, what possible, you know, diseases she might have had at the young age of three or four. But the autopsy is going to be key. And you could see that computer photograph change over the next week or so.

BURNETT: Hmm. All right. Art, Paul, thank you very much.

RODERICK: Thank you, Erin.

BURNETT: And OUTFRONT next, we will going to go live to Los Angeles. Protesters turning out at this moment at a Donald Trump campaign event where the presidential candidate will be appearing momentarily.

And an OUTFRONT investigation, things you touch every single day, in fact, look down right now at your food wrapper or the carpet under your feet. Both could be full of life-threatening chemicals. We have an important report only OUTFRONT.

(COMMERCIAL BREAK)

[19:27:24] BURNETT: At this moment, growing protests at a major Donald Trump campaign event. These are live pictures of demonstrators outside of major hotel in downtown Los Angeles. Donald Trump is about to speak there. He will be arriving momentarily. Demonstrators calling this the dump Trump event. They are there to protest his comments calling some illegal immigrants rapists and murderers.

Our Kyung Lah is live on the scene in Los Angeles. And Kyung, what are they saying about Donald Trump? I know they are awaiting his arrival any moment.

LAH: And hoping that he is going to see some of the signs that they are carrying, showing them. They say dump Trump. It's a social media event as well. These activists though have taken the step to come out to this corner where this hotel is situated and make sure that Donald Trump sees what they think. And here is one of these people. This is Martha Munoz. And you are here carrying quite a large sign. What is it that you hope Donald Trump sees from all the people who are gathered on this corner?

MARTHA MUNOZ, PROTESTER: I really want him to feel all the Mexican people and Latino people think about him. He is an ignorant racist. And we don't want him here in California. He better go back to New York. Because if he tries -- even tries to run for president, Latinos, Mexican-Americans and I bet you, many other people, they are not going to vote for him. Who may want a president who is spreading hate and racism? Who? We live in the land of the free and justice for all. We don't want that in this country. Whatever he is trying to push, we don't want that. He better go back.

LAH: Martha, he is doing quite well in the polls so far though for the candidates for --

MUNOZ: Let's see how he does with the Latinos and Mexicans. We are a power right now in the electoral poll. You know? So, I don't think he is going to win any Latino or Mexican Americans vote. That's for sure. After what he is doing, forget it. We will see.

LAH: All right. Thank you, Martha Munoz. Just one of the protesters who are here on this corner. Donald Trump is expected to speak at a private event here, an event organized for conservatives in the entertainment industry. We're not allowed inside that event. But we are anticipating that he will be speaking to reporters later on this evening -- Erin.

BURNETT: All right. It's going to be very interesting. We will keep monitoring and of course as he could arrive any moment. Thanks to Kyung.

And I want to bring in now as we await that arrival and face off, former Reagan White House Political Director Jeffrey Lord, now a contributing editor at American Spectator along with Ben Ferguson, the host of "The Ben Ferguson" show.

Jeff, let me start with you. Donald Trump pinatas -- JEFFREY LORD, FORMER POLITICAL DIRECTOR FOR PRESIDENT REAGAN:

Yes.

BURNETT: -- for sale in Los Angeles tonight for 150 bucks each. Something probably Donald Trump would admire.

(LAUGHTER)

Some enterprising individual.

LORD: I'm sure he would.

BURNETT: I'm sure he would, right. But, obviously, all jokes aside, this is a serious and upsetting image for many. The immigrants rights organization holding this demonstration, you know, said it was going to use these pinatas to represent the type of language the candidate has been using. They are filling the pinatas with trash.

You, though, do not think that he should back down.

LORD: No, I don't. I think there are millions of Americans out there that don't think he should back down.

I saw today on your network not long ago on your show, Jamiel Shaw, Sr., being interviewed, an African-American man who lost his 17- year-old son to an illegal immigrant who shot him dead on the street.

This is a real problem. And we need to have compassion for these people. We talk a lot of time we use the phrase about "being in the shadows". I think the victims of illegal immigrant crimes have been in the shadows for too long and they need to come out. We need to bring them out.

I think that's what Donald Trump has brought this subject front and center. And that -- you know, I think that is one thing that is a mark of leadership.

BURNETT: Well, you certainly can't deny he has brought this issue front and center. He has. He is responsible for that. Despite the protests, Trump's campaign says that things are going so well they had to move their major event this weekend tomorrow in Phoenix from a hotel to a convention center because thousands are expected to attend.

So, they're saying -- again, this is the campaign, that they are saying that this is paying off, more and more people want to hear Donald speak. It seems like his message is resonating.

BEN FERGUSON, CNN POLITICAL COMMENTATOR: Well, it's resonating, but it's also I think a reality TV show. It's on tour in a political way.

I mean, you look at Donald Trump and you see what he is doing. He loves these protests. He loves these pinatas. He loves the controversy. He is probably the only candidate that truly loves all press regardless of what they are saying.

Now, is he connecting with voters? Absolutely.

The problem is, if you look at what he is actually saying, he is insulting just as many people as he is inspiring when he has these conversations. You're right.

Donald Trump has a point when he is talking about -- there is a lot of negatives that come from illegal immigrants. There are illegal immigrants that do, in fact, commit heinous crimes. We have seen some of those highlighted in the last week and a half.

But is he the right messenger for this? Is he able to say there is good things that people do and there are some bad things? I think it's pretty obvious -- he is not the messenger that's able to handle this in an articulate and clear way without unfortunately really making a lot of people hate him.

BURNETT: You know, Jeff, Trump has -- here's what he said in the past couple of days. Let me just let him say it in his own words.

(BEGIN VIDEO CLIP)

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: Illegal immigrants are causing tremendous problems -- in terms of crime, in terms of murder, in terms of rape. They force people into our country and they are drug dealers and they are criminals of all kind. We are taking Mexico's problems.

They are taking people that should be in Mexican prisons, Mexican jails and pushing them in the United States. These are dangerous people.

(END VIDEO CLIP)

BURNETT: Jeff, my question to you is, I know you think he shouldn't back down, but this is becoming the defining part of his campaign at this point. Is he at risk of being defined by just this one thing and he is quadrupling down on it for no other reason than because he doesn't want to back down.

Is that a mistake?

LORD: First of all, I was looking at just today statistics from the U.S. Border Patrol that verify exactly what he is talking about. I mean, this is the United States government saying this. So, I don't think he is doing this for political reasons. I think he really believes this. I think he is accurate.

But secondly, I think that this is one issue in a string of issues as we go through the campaign. And what people are responding to is the fact that he is willing to speak out and speak his mind and not be up with one of these folks that we see in politics that will tell what you want to hear and --

(CROSSTALK)

FERGUSON: With all due respect, he is telling you what you want to hear. If this is -- if he really believes this, how did he give money to Harry Reid in favor of bringing in more illegal immigrants into this country? How did he give money to Hillary Clinton? How did he give money to the Democratic leadership, including Nancy Pelosi?

To act as if he is authentic on this issue, I'm sorry. That to me is laughable.

Look at the money and the money he came in. He directly went and supported candidates that were in favor of amnesty for people coming to this country illegally. Don't act like now Donald Trump is some truth-sayer on illegal immigration this moment for his campaign.

[19:35:04] LORD: Ben, he is, A, not a politician. He is a businessman.

FERGUSON: He is a politician. He is running for president. You're a politician.

LORD: Right. All of campaign finance reform -- campaign finance depends on people giving money and getting money. I can go chapter and verse through one Republican after another that have accepted money from lobbyists --

(CROSSTALK)

FERGUSON: Let's not act like this is an honest thing for Donald Trump. It's not.

LORD: Oh, I disagree.

BURNETT: We will leave it -- we will hit a pause button. I have a lot more we want to talk about. But it was a great conversation and I appreciate it.

OUTFRONT next, the cost of running for president. So, Donald Trump, as you know, has lost a lot of business deals. To this whole point of whether he believes in what he is saying, at least when it comes to the bottom line, he sure seems to. We're going to show you exactly how much this is hurting his wallet.

And South Carolina Governor Nikki Haley on the historic day in her state.

(BEGIN VIDEO CLIP)

GOV. NIKKI HALEY (R), SOUTH CAROLINA: You know, this is a surreal moment. Standing out there and watching that flag come down, it felt like the biggest weight was lifted off the state.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

[19:40:06] BURNETT: Donald Trump arriving face to face with protesters any moment now in L.A. His remarks on immigrants and rape have cost him millions in lost deals, but he says it's peanuts to him. Joe Johns is OUTFRONT.

(BEGIN VIDEOTAPE)

JOE JOHNS, CNN SENIOR WASHINGTON CORRESPONDENT (voice-over): Donald Trump's White House bid is putting a dent in his wallet.

ANDERSON COOPER, CNN ANCHOR: How much has this cost you? I mean --

TRUMP: A lot. Oh, it costs me a lot.

JOHNS: Trump acknowledging the financial fallout from his comments about illegal immigrants coming from Mexico.

TRUMP: They are bringing drugs. They are bringing crime. They are rapists. And some, I assume, are good people.

JOHNS: Since those remarks, many of Trump's business partners have cut ties with the outspoken billionaire.

TRUMP: My dress shirts are 100 percent cotton.

JOHNS: Macy's dropped his Trump's menswear line.

NBC yanked his hit show "The Apprentice", and NBC and Univision will not air beauty pageants co-owned by Trump.

Now, two celebrity chefs are pulling out of restaurant deals in Trump's Washington, D.C. hotel still under construction. Jose Andres, himself an immigrant, Trump's statements on illegal immigrants make it impossible to move forward.

Outside the hotel, a small group of protesters voicing displeasure with Trump's views.

UNIDENTIFIED MALE: This is the proverbial tip of the spear.

JOHNS: The U.S. Hispanic Chamber of Commerce says the Hispanic business community has galvanized around an unofficial boycott of Trump's brands and properties.

UNIDENTIFIED MALE: This is going to go on for a long time. For every brand that we hear about walking away, there are probably five to ten, 15 others that are walking away quietly.

JOHNS: To the average American, Trump's estimated losses following his inflammatory comments are enormous, in the millions of dollars. But Trump brushes off the impact.

TRUMP: Now, here is the good news. I'm very rich. I built an unbelievable company. The money you are talking about is a lot. But it's peanuts for me. But it's still a lot, more expensive than a campaign would cost.

JOHNS: Trump claims he's worth about $8.7 billion, although "Forbes" magazine estimates a net worth closer to $4 billion. A big chunk comes from commercial and residential real estate he owns, like Trump Tower, at $470 million. And Trump Park Avenue, valued at $240 million, according to "Forbes".

Trump puts his real estate licensing deals, brand and brand developments at $3.3 billion. But "Forbes" says it's actually $253 million.

(on camera): Precise numbers on the amount of the Trump losses are difficult to pin down. However, we do expect to get a more educated guess about Trump's assets, liabilities and even his losses when he files formal financial statements with the Federal Election Commission -- Erin.

(END VIDEOTAPE)

BURNETT: All right. Thank you very much, Joe Johns.

And OUTFRONT next, South Carolina lowering the Confederate flag for the last time. The governor of South Carolina breaks her silence next.

An OUTFRONT investigation you can't miss -- life-threatening chemicals found in every day household items, pop corn bags, food wrappers, pizza boxes. What's the danger and why are they still in use?

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BURNETT: Tonight, a symbol that caused so many so much pain gone from South Carolina's state house. In front of thousands, many of whom were chanting "USA", others crying, the state's honor guard took down that flag, the Confederate flag.

And tonight, it's at the state's military museum.

Don Lemon was there at the emotional ceremony.

And, Don, you had a chance to speak to the state's governor, Nikki Haley, who throughout this whole controversy has not been talking to the media. You got a chance to ask questions. What did she say?

DON LEMON, CNN ANCHOR: I did, right after this flag was taken down, Erin. And she said a lot.

Really, she was very aware of the enormity of the situation, that this was history in the making. While she knew most of the eyes of the country were going to be on her because it was her decision to sponsor the bill to bring it down, she said she was focused on the families of those nine people who died in the church three weeks ago.

(BEGIN VIDEOTAPE)

HALEY: You know, this is a surreal moment. Standing out there and watching that flag come down, it felt like the biggest weight was lifted off the state. It just felt so -- it's like the state -- it's a true new day in South Carolina. It feels like a new day in South Carolina.

LEMON: You grew up here --

HALEY: Born and raced in South Carolina, but the daughter of Indian parents.

LEMON: Does it mean more to you? Does it make you more connected to this issue? Do you have a special feeling about it?

HALEY: We grew up an Indian family in a small town in South Carolina. My father wears a turban. My mother at the time wore a sari. It was hard growing up in South Carolina.

But what I have always been proud of and what I worked towards is to make sure that today is better than yesterday, and that my kids don't go through what we went through. And now, I feel good because now I know my kids can look up and there won't be a flag. And it will be one less reason to divide and more reasons for us to come together.

LEMON: You have said this. I don't know if it's exact words. But you have all done this because you weren't on the side of taking this down, but you said -- I think it takes a big person to change their mind. Why did you change your mind?

HALEY: It wasn't that I wasn't for taking it down. First of all, South Carolina very much respects history, respects tradition. And so, the flag has always been up there.

So, when I came into office, to have a two-thirds vote threshold was huge one. And it's not a Republican, Democrat, white, black, there hadn't been a bill filed to bring that flag down since 2007. There was so much of a divide and so much hurt in the compromise of 2000, that no one wanted to talk about it.

So, it was almost like people just assumed it was going to be there.

LEMON: This flag went up in 1962, correct? Do you think it was a sort of poke in the eye to the civil rights movement?

HALEY: You know, I'm not going to try and figure out why people did what they did. I think the more important part is, it just never should have been there. And I think that even when it was on the grounds of the state house, it was right in front. And these grounds are a place that everybody should feel a part of. And these grounds are a place that should be -- that belong to the people of South Carolina.

And what I realize now more than ever is, people were driving by and they felt hurt and pain.

[19:50:02] No one should feel pain. You know, we can have our disagreements and we can have our policy back and forth. But no one should feel pain over something. Not over a symbol. LEMON: So, then, what do you say, Governor Haley, to other

states who still have parts of the flag or even, you know, the flag hanging, flying, in the state? What do you say to those?

HALEY: I understand the heritage. I understand the tradition. I don't believe that they get it's hate. They really don't. They're trying to honor their former family members.

But what we need everyone to know is, if it causes someone pain, something is wrong. It, that's the biggest part of it. No one should look at something and feel pain. No one should have to struggle to explain something to their children.

And I tell people all the time, the biggest reason that I ask for that flag to come down was I could not look my children in the face and justify it standing there.

LEMON: And speaking of pain -- you -- it was important for you. I want to know why it was important for you to have the people around you that you had around you, because you had family members, right, around you this morning. Why was that important? They are certainly in pain right now.

HALEY: I am forever changed by the nine people that died in Mother Emanuel Church. Changed in the way I want to every one of the funerals. Not because I had to. I wanted to.

I wanted to meet those people. I wanted to meet those nine people that took in some one that did not look like them, did not act like them, and they accepted him and parade with him for an hour. I needed to know who those people were.

And what I found was I met Cynthia Hurd, who her life motto was "be kinder than necessary."

I met Tywanza Sanders, who was a 26-year-old, youngest of the victims had just graduated college and wanted his own barber shop. But his last words were to the murderer, and it was: "We mean no harm to you. You don't have to do this."

(END VIDEOTAPE)

BURNETT: You know, Don, it's a powerful interview. And, you know, it's a change of heart for the governor. I know in past years, you know, she's defended that flag.

But she is the daughter of if grants, and when she was growing up she had feelings when she looked at the flag. She talked to you about that, right?

LEMON: She did. She said she had feelings. It's really growing up here in the state of South Carolina, one day at a vegetable stand with her parents who were Sikh, her dad wore a turban, her mom wore a sari, and she said, they were there one day and people were looking at them oddly, and the police showed up to sort of help them to navigate them out of the store. And she said, her dad went around and thanked every police officer and every single person there.

She knew it was an odd moment. No one said a word in the car on the way home. But she said it was for her, it helped her empathize with people who are sometimes seen as different or people who are minorities.

And I think that really played a big role in having her make this decision.

BURNETT: All right. Well, Don Lemon, thank you very much. Fantastic interview. And thank you for sharing it with us.

LEMON: Thanks, Erin.

BURNETT: And OUTFRONT next, the carpet your baby crawls on, the jacket you are wearing. Many are waterproofed with toxic chemicals. An OUTFRONT special investigation is next.

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[19:56:48] BURNETT: New worries about dangerous toxins hidden in everyday household products. Researchers say chemicals in some food storage that containers sold as safe are actually linked to things like diabetes in children and waterproof and nonstick, rain coats, frying pans could contain life-threatening toxins.

Kyung Lah has a special OUTFRONT investigation tonight.

(BEGIN VIDEOTAPE)

KYUNG LAH, CNN CORRESPONDENT (voice-over): It's what allows the skier to slice through snow and his suit stays dry, chemicals that repel water and oil. Coating many microwave popcorn bags, fast food wrappers, pizza boxes, the carpet your babies crawl on, unseen chemicals so widely used for the last 50 years you touch them repeatedly every day.

ARLENE BLUM, EXECUTIVE DIRECTOR, GREEN SCIENCE POLICY INSTITUTE: It's very practical but if you know the other side, you might question it.

LAH: They are called highly fluorinated chemicals says UC Berkley chemist Arlene Blum, who's one of the skeptics, extremely effective as nonstick and waterproof barrier. But toxic enough, that 200 scientists from around the globe banded together in the declaration, saying human studies show connection to cancer, lower birth weight and delayed puberty. In the environment, fluorinated chemicals don't easily biodegrade and travel across the oceans, found even in the bodies of polar bears that scientists urge global use drop.

The most toxic of the fluorinated chemicals is being phased out around the world. Why outdoor gear maker Patagonia is already using what it claims is a safer version of chemical on its fabrics.

MATT DWYER, ADVANCED MATERIALS INNOVATION PATAGONIA: We know that particular chemistry set is a bad actor and risk for human health, which is why we have gone through the actions to get rid of it.

LAH (on camera): You're just trying to find the one that does less harm.

DWYER: Exactly. Still get the performance that we're proud of and we'll back up with our guarantee while minimizing the impact.

LAH (voice-over): Patagonia calls this alternative chemical a stopgap, while it searches for an even better one. But the FlouroCouncil representing chemical companies says what is being used now is approved for human use and the industry spent $700 million over a decade to bring this alternative to market.

ROBERT SIMON, DIRECTOR, FLOUROCOUNCIL: This newer technology has been thorough leap tested, reviewed by regulators and determined to be safe for its intended uses.

LAH: Scientists like Arlene Blum are not convinced.

BLUM: They say they're safer. Well, safer than what? The old ones are extremely harmful. Do we want to risk the harm to our planet, our children, our lives?

LAH (on camera): Woven into all of this is politics and money. According to the Web site, opensecrets.org, campaign contributions from the chemical industry spiked in the last election. Previously, they've been $13.5 million. In 2012, it jumped to $47 million -- Erin.

(END VIDEOTAPE)

BURNETT: That was incredible statistic.

All right. Kyung Lah, thank you very much.

And thanks to all of you for joining us. Be sure to set your DVR so you can record the show. Watch us at any time. Hope you have an absolutely fantastic weekend. Enjoy a wonderfully summery night.

"AC360" starts right now.