That actually is the problem, respect shown for the dead or the lack of it.
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Regarding this story I haven’t seen anything published that addresses that subject ,,, I myself would be OK with being buried in that way if respect was shown ,,, buildings are repurposed all the time. I cannot imagine the nuns not being respectful.
The accusation is that children of unwed mothers were held in very low regard, born in sin, were therefore not baptized and would not have been permitted to be buried in consecrated ground because of this. The order that ran the home hasn’t said much, other than that the old records were turned over to county authorities. They’ve stated that they’d cooperate fully, but that’s the only direct reference that has been made.