The state Board of Public Works today appropriated $64,200 for the Maryland attorney general to use in his investigation of the fund-raising activities of the Pallottine fathers of Baltimore.
Attorney General Francis B. Burch said part of the money was needed to hire two outside auditors to study the financial records of dozens of businesses connected with the small Roman Catholic order, whose massive direct-mail financial appeals are the subject of an on-going investigation by a state grand jury.
Burch said 53 subpoenas have been issued since a special Baltimore City grand jury began looking at the Pallottines on Jan. 11, and the attorney general said "a much larger number of subpoenas" will be issued in the coming months.
Burch said $40,000 of the money would be used to hire two auditors, probably former Internal Revenue Service employees. Another $17,500 is needed to make stenographic transcripts and $6,700 will be used to pay for rental of storage and office equipment to house the volumes of material that will be subpoenaed.
The investigation is being led by Robert C. Ozer, who formerly headed Justice Department organized crime strike forces in Buffalo and Detroit.
In answer to a question by State Comptroller Louis Goldstein, Burch said the investigation might take eight months to a year to complete. The Board of Public Works is made up of Goldstein, Gov. Marvin Mandel and State Treasurer William S. James.
The grand jury hopes to learn what happened to the more than $60 million the Pallottines raised between 1970 and 1975 as the result of its Sweepstakes mailings and other direct-mail campaigns.
Mandel still owes part of a $54,000 loan from the Pallottines that he used to help finance his divorce two years ago.
Burch said the auditors will attempt to "ascertain the flow and utilization" of millions of dollars that donors thought were going to be sent to foreign and domestic missions. Audits ordered by Baltimore Archbishop William Borders showed that less than 5 per cent of the money collected ever went to mission work.
The archbishop banned from the Baltimore the Rev. Guido John Carcich, the Pallottine priest who masterminded the nationwide fund-raising scheme. Audits showed that Carcich personally held secret interests in more than $250,000 worth of real estate projects purchased by the order.