New-York tribune., 1920-09-12
Sii1111 Feii11 Puts
Dublin OnBriink
OF Bankruptcy
Struggle Between Two Rival
Governments for Control
of Purse Leaves the City
Without Cash to Pay Debt
Cannot Borrow to Pay
I'm the Mean Time Wrifs Will
Likely Be Filed Against
Corporation by Creditors
From O Special Correspondent

bankruptcy, and the City High Sheriff
has been moved to take the public into
his confidence relative to the serious
state Of the finances of the Irish CAPT.
tai. The corporation owes the Bank
of Ireland 100000.
1t owes $250,000 as it's share of the
upkeep of the city and county work
house. 1t owes $215,00O for housing
done by contract up to date, and will
owe $450,000 when the work is finished,
and it cannot meet its present liability.
1T owes a substantial sum for work
done by contract for the electricity de-
| partment, and cannot borrow to pay.
1t owes a substantial sum for the wa
terworks reservoir contract for work
done, and cannot borrow to pay.
Writs are likely to be issued against
the corporation at any moment for each
OF the three latter matters, and if the
bank cuts short it will not even have
money to pay wages and salaries. 1t
| mas struck and cannot now vary it's
rates for the current year, which al
ready exceed 20 shillings in the pound
on the valuation.
This unhappy situation of the Dublin
Corporation is an incident of the strug-
gle now proceeding between the two
rival governments in Ireland, the i'm
|
government, for control Of the power
of the purse.
The Dublin municipal estimates are
based on certain imperial credits or
grants to which the municipality is en-
titled by legislation. The amount of
the grants due to it for the current
year is $1,0o0,0oO. These grants are
due under legislation dating from 184o,
whereby the imperial government
passed certain responsibilities of
state nature on to the local authorities,
contributing to the services then and
since inaugurated proportion Of the
expenses, subject to certain orders and
regulations
The services in question include
such matters as the upkeep of asylums
for the insane, meals for school chill
dren, schemes for the treatment of tu-
ercuteass and other diseases, medical
poor relief, maintenance of roads. and
so on.
The local government board, which
unner the control of the imperial Par
and subsidies to public bodies in Ire
land, refuses to pay the Dublin Corpo-
ration the 81 100000 due in grants. Its
refusal to do SO or to make any fur
ther loans is based upon a clause of
the Restoration of Order (reland) act
just passed in the imperial Parlia-
mcnt, enforcing it to withhold funds
from any body which does not recog-
nize its authority. The risk of bank
ruPtcy Is the price which the Dublin
Corporation has to pay for having de-
clared its allegiance to the Irish Re-
| public.
Inc case of the Dublin Corporation
is extreme. for its finances were en-
| barrassed before, but almost every
public body in Ireland is in moro or
less the same position. New elections
were held for the city corporations
and urban district councils in January,
ana Tor the county councils and rural
district councils in June.
IN IN twenty-elght out of the thirty-two
IRISH counties control of the local gov
ernng bodies was captured bv the S;nn
rem, ana all of these bodies proceeded
TO declare by resolution their allegiance
10 the Irish Republic. This repudiation
CT the authority of the imperial Parlia-
ment involved refusal Of the local gov-
ernlng bodies to send their minutes for
spectlon and submit their accounts for
auo1e m1 by the local government board.
me latter then circularized the local
councils, declaring that it had ex-
plicit instructions from the eovernme
TO make no loans or grants from public
1uaos ior any purpose to any local
aaLuthorlty without definite assurance
tnat 1t would conform to the rules and
orders of the board as heretofore
Inc board pointed out at the same
tlme that these rules and orders were
not not framed with view to restricting
IN Inc AauthoSlty Of the local councils. but
with the /sole object of SECURING en-
cheney and uniformity in the system ~" ~
admlnlstration and safeguarding the
.htterests OF the ratepayers through out
the country. The local councils how.
ever. continued to ignore the board
ana IN consequences all imperial grants
nave been cut off.
IN the upshot the whole local gov
ernment Of Ireland is threatened With
paiaiys1s. VI the total net revenue of
county and town authorities only 40
pei, cent comes from local sources es
ana the remaining 20 per cent from
lmperla! grants. Moreover, many local
a!uthorltles are engaged in the prepara-
tlons OF schemes for housing, road con-
structlon and public health improve
ments which would normally REQUIRE
exchequer. AGA
The reply of Sim Fein to the action
OF the government is not fully dis
closed. 1t is assumed that the local
authorltles will repudiate liability for
any outstanding imperial loans but
THIS will not restore their solvency.
Dali Eireann, the Sim Fein Parlia-
ment, has ordered the holding of a
commission of inquiry into the whole
OBJECT OF local government in Ireland,
which may lead to an attempt at a
regional redistribution, and a move
ment in favor of substituting a Soviet
for. territorial basis has to he
reckoned with. The imperial grants
IN aid of rates now withheld have
hitherto represented the main return
to Ireland Of her income tax payment.
AS yet the Republican government has
made little serious attempt to divert
income tax from the pockets of the
imperial government into its own. But
the present financial crisis nrou;ra.