The New York herald., 1922-08-22
FREE STATE TIES UP
VALERA FUND HERE
Continued from First Page.

after having participated In treaty nego-
tiations as economic and financial adj
wiser to the Irish delegation. Since that
| time he has conferred with members and
| leaders of the Irregulars. from whom
he says he learned that they considered
that the present Provisional Government
of Ireland is not entitled to the property
in this country and should not be per-
mitted to turn it over for the benefit or
the Irish Free State.
In July Smiddy was directed by Col
Inns to ascertain what funds were de-
posted here. Thereupon he talked with
| Healy, a clerk in actual charge or the
New York office Of the Dali. Smiddy
said that Healy. although fully aware
! of his credentials as a representative OF
| Collins. refused to recognize any right
he might have and to give any informa-
ton as to the funds here.
| Smiddy also says that Healy's prede-
cessor, Gilbert E. Ward, who IS one OF
the defendants. was discharged from tne
New York office because he refused 20
give information sought and sympa-
thized with the Irregulars. He says
Healy since that time in the conduct OF
| the office. has continued to manifest
sympathy with the Irregulars ana mas
given information either reluctantly OF
has refused to give any information at
| all relating to the Irish funds.
Sees Trust Violated.
When Healy was asked by Smiddy to
locate the funds he said he believed
| there was some money on deposit with
the Hartman National Bank. He later
| said he had learned nothing further con-
| cerning other deposits. Smiddy tnen op-
| tanned certain information from ireiano
and interviewed the safe deposit COM
panies. ascertaining that in May OF this
year O'Mara rented safe deposit boxes
In his own name and In the name OIL
Ward. These two gave power Oh at-
torney to Healy, cards OF the companies
| show, he asserts.
| Smiddy says he was informed by rep
resentatives of the safe deposit COM
panies that in June Healy had opened
| some Of the boxes. This was shortly
before the time when Healy said he
knew nothing about the securities IN
question There Is no insinuation tnaf
| Healy removed any OF the securities
! from the boxes. All the acts OF O'Mara,
however, in renting the boxes and max
| ing the deposits. Smiddy says, We're
In violation of the trust agreement un-
der which O'Mara obtained control OF
the funds. De Valera not being in this
| country at the time.
Law the Only Remedy.
| Estimates as to the total amount of
money collected In this country largely
| through the activity OF De valera ana
his lieutenants have varied. the highest
estimates placing the amount at S,oV,-
| co., For a long time the money was
deposited in various banks in De
VaIera's name. but was supposed to
be held in trust by a committee of three
consisting of De Valera, Bishop sFogarty
and James O'Mara. for the Irish Parlia-
ment or Dali Eireann When the lirsh
peace treaty was signed the FREQ state
Irish held that De Valera should no
longer have custody of the funds In
this country and that he should be de-
prived OF the right to make further
collections. The point was matter of
discussion and argument in Irish circles
for a long time. Notwithstanding pro-
tests, il Is asserted, at least s25o.0o0 and
possibly much more, was Withdrawn
from the fund early in this year.
This reported incident, perhaps more
than any other one thing. led TO a series
OF quiet inquiries as to the state OF the
fund and the disbursements that had
been made from 1t from time to time.
Those who were opposing the De Valera
faction contended after they started
these inquiries that they could get no
satisfactory information from De Valera
or his secretary, Harry Boland, and
that from all indications the whole af-
fair was In tangle 1t would take
months to straighten out.
Legal proceedings, 1t was agreed by
many, provided the only means of get
ting at the truth and conserving what
might be left of the fund. 1t Is believed
1.Af1 ~ .ft1f.
municated their views to Collins and
Griffith on the other side Of the At
lantic and that the proceedings started
Yesterday are the outcome.