Ferguson is charged with committing sex crimes against the two boys who were aged between 12 and 14 at the time of the alleged offences.
Two witnesses who went to school with the alleged victims yesterday gave evidence.
One of the men told the jury Ferguson invited him and another boy into his room to smoke a pipe.
He alleged while he was there, Ferguson grabbed his hand and put it on the priest's private parts.
He said he also witnessed Ferguson sexually assault his friend.
Another witness described how Ferguson had punched him in the stomach and threw him on a bed then sexually assaulted him.
Ferguson's lawyer Greg Walsh suggested to the witness that the incidents did not occur and that he just wanted to get money out of the Church.
The witness replied, "it was never about money".
The trial continues.
Priest stands trial over alleged 1970s abuse (ABC News, 21/3/07)
LINKS (not necessarily endorsed by Church Resources)
Marist College Burnie
Marist apology to victims in abuse case (CathNews, 28/3/06)
Marist Burnie ex-pupil tells of sex abuse (CathNews, 21/2/06)
22 Mar 2007