In 1878 Father Connolly was transferred, and in June of that year Father W. M. Walsh succeeded him as priest of the parish. With his coming began an era of improvement; St. Joseph's Church was enlarged, and in 1880 he still further enlarged same.
On January 22-23, 1892, the church was totally destroyed by what was practically a waterspout, in which calamity valuable works of art and other articles of moment were lost. Father Walsh was successful, at the risk of great personal danger, in saving the Blessed Sacrament from the Tabernacle.
This was a severe blow. But within 24 hours Father Walsh called his congregation together, and arrangements were made for immediately converting the largest of the school buildings into a temporary church. It was recognised that the time was ripe for building a new and large church in a more central situation than that occupied by the old edifice. Donations were called for, and the response was spontaneous, so that on Sunday, the 7th of October, 1900, the foundations and basement of a new and grand church were completed by the laying of the foundation stone of the Church of the Sacred Heart. This ceremony was performed by the Right Eev. Dr. Higgins, Bishop of Rockhampton, assisted by the Most Eev. Dr. Redwood, Archbishop of New Zealand. At this ceremony £3,000 were subscribed towards the erection of the building. The new Church of the Sacred Heart was consecrated oh Sunday, November 16th, 1902 ; the ceremony was performed by His Lordship Bishop Higgins, assisted by many priests from various parts of the State, including Father Dujbiig, then of Ipswich, now Bishop of the diocese of Rockhampton. In Townsville in 1910 there are three Catholic churches, St. Pat- rick's Convent and High School, the comfortable presbytery, and a half-dozen Catholic school buildings. Father Walsh departed this life on February 16th, 1908, at Sydney. His remains were everywhere accorded most respectful marks of honour. His funeral was a most imposing sight, and during the previous night, while the body was lying in state, the church was visited by more than 1,000 mourners. The Rev. Thomas F. Bourke was appointed to succeed the late Father Walsh.
