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American Morning

Abuse Allegations Hit Collection Plates

Aired March 20, 2002 - 08:13   ET

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

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ANDERSON COOPER, CNN ANCHOR: The big question this hour, who is paying for the sins of the fathers? Hardly a day has gone by without new allegations of sexual abuse of children by Catholic priests. Not only are the allegations shaking faith in the church, the lawsuits and settlements are threatening its financial foundation as well. Parishioners are asking where exactly is the money coming from?

CNN's Jason Carroll has that story.

(BEGIN VIDEOTAPE)

JASON CARROLL, CNN CORRESPONDENT (voice-over): The Catholic Church is at a crossroads both morally and financially. It's bearing the burden of scores of scandals involving its priests and allegations of sexual abuse. Estimates of the total payouts to victims nationwide staggering, from $300 million to $1 billion, and with each new case comes concerns among parishioners about where all the money is coming from.

UNIDENTIFIED FEMALE: I think that obviously if there is a settlement it needs to be separate from what the church parishioners actually provide.

CARROLL: A point many who attend All Saints Church in Dallas made clear in 1997 in a case involving former priest Rudolph Kos. A jury awarded the plaintiffs $119.6 million, the largest clergy abuse judgment in history.

BRONSON HAVARD, SPOKESMAN, DALLAS ARCHDIOCESE: We've thought about bankruptcy here in the diocese of Dallas.

CARROLL (on camera): It got that serious?

HAVARD: It got that serious.

CARROLL (voice-over): The threat of bankruptcy got the judgment reduced to $31 million. Insurance, as in many cases, covered part of the costs, leaving the church to come up with $11 million.

LEORA VILLAREAL, PARISHIONER: The upstairs was a high school.

CARROLL (on camera): Up over here?

VILLAREAL: Yes. This was our cafeteria. CARROLL (voice-over): So church properties like the city block that Saint Anne's sits on were sold. The former Catholic school was loved by the Mexican-American community, many of whom are still angry over its sale.

VILLAREAL: Why should we be the ones singled out to pay for this?

ALBERT GONZALEZ, PARISHIONER: The diocese over there, with just one signature, got rid of the property.

CARROLL: The diocese says it didn't want to take it from parish donations, so other sacrifices were made. And admittedly, those who were hurt were the most vulnerable.

BISHOP CHARLES GRAHAM, ARCHDIOCESE OF DALLAS, TEXAS: In a sense, selling those properties, who suffered? The poor suffered.

CARROLL: In Tucson, Arizona, the diocese will borrow money to pay what insurance won't cover in an undisclosed settlement reached last month. In Boston, the archdiocese could end up paying $100 million out of its own pocket in past and pending claims against former priest John Geoghan as well as other priests.

DONNA MORRISEY, SPOKESWOMAN, DALLAS ARCHDIOCESE: We are considering all of our options at this time. That may include assets, the feasibility of loans, private donations.

CARROLL: The archdiocese wouldn't reveal its financial information, but it says it won't dip into donations to pay for settlements. Even so, parishioners say money won't cover the costs in their loss of faith and trust.

Jason Carroll, CNN, Dallas, Texas.

(END VIDEOTAPE)

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