--- Page 1 --- COPY DIOCESE OF LINCOLN Chancery Office 514 South 18th Street Lincoln. Nebraska. September 21st 1937. Very Rev. Stephen Murtagh O.M.Cap. 1541 Golden Gate Avenue, Los Angeles, California. Dear Father Stephen: In compliance with our mutual agreement that it would be well to make of record the main points which came up for discussion during your official visit in Lincoln, I write this letter. Since December of 1936, I have written to Father Joseph on four different occasions. In each one of my communications I called attention to the acute situation which prevails in the Sacred Heart Parish. The critical state in which the finances of that congregation exist today was pointed out to you as it had been time and again to Father Joseph. Indeed, you came to Lincoln with the knowledge that the Sacred Heart Parish was facing bankruptcy and that the Capuchin Fathers could not continue in that administration under the circumstances which prevail. It was your opinion that for the good of the Capuchin Order it is advisable to withdraw the Capuchin Fathers from the Sacred Heart Parish in Lincoln. In view of this fact, we made a brief examination of the financial records of the parish and the Capuchin Fathers in the Sacred Heart congregation. We both agreed that the parish obligations must be refinanced through some comprimise settlement. It is obvious, we added, that the present indebtedness is altogether too large for the parish of the Sacred Heart. The scanty and altogether too incomplete accounts also reveal that the Capuchin Fathers have found it necessary to sacrifice a portion of their annual salary in order to pay some of the operating expenses of the parish. There is evidence that for the past several years the Capuchin Fathers failed to balance the budget of the parish, and as a result, made sacrifices on behalf of the congregation which drained the resources of the Community. In view of these conditions, we mutually agreed that it would be to the advantage of the Capuchin Fathers to relinquish the administration of the Sacred Heart Church in Lincoln. It was your contention that under the circumstances which now prevail and owing to the reduced incomes of the members of the Sacred Heart parish on account of the economic depression, the Capuchin Fathers could not hope to retain charge of the Sacred Heart parish without further burdening the entire community. We agreed that on condition that your Provincial in Ireland could obtain permission from the Holy See to withdraw your Fathers from the Sacred Heart Church, the Ordinary of the Diocese of Lincoln would acquiesce. Accordingly, we shall await word from your Superiors. If the Holy See approves the proposal of your Order, then the Diocese of Lincoln will assume charge of the Sacred Heart Parish by appointing a diocesan priest as pastor of that congregation. It was further agreed that in the event that the Capuchin Fathers leave the Sacred Heart parish, furniture paid for by the Capuchins would be purchased at a reasonable price by the Sacred Heart parish. Assuring you of my esteem and appreciation, I am, Sincerely yours, LOUIS B. BUCERA, LBK : MEC Bishop of Lincoln.