The New York herald., 1922-08-22
FREE STATE TIES UP
$2,3OO,O00 BANKED
HERE BY De VALERA
Collins Gets Injunction on
Money Collected for the
Irish Republic.
HITS REBEL WAR FUND
Action Against 'Irregulars'
Expected to Trace All
/ Expenditures.
CONSPIRACY is CHARGED
Custodians of Cash Donated in
u. S. Said to Have Ignored
Dail's Orders.
HITS REBEL WAR FUND
CONSPIRACY Is CHARGED

Definite action was taken yesterday,
not in ireland, but in this city, to de-
prive the Irish irregulars. represent
ing the Irish Republic" of the real
sinews of war. the money collected IN
this country, largely through the sale
of Irish republic bonds. Supreme
Court Justice Burr granted tempo
rary injunction restraining certain
banks here in which the funds are
kept from paying them out on the or
der Of Earnon de Valera and others.
The amount involved is said to be
$780, 900.
This action, taken by Michael Col
Inns. leader of the forces of the Irish
Free state, and concurred in, it Is un-
derstood, by Arthur Griffith, who died
August 10, came coincident with the
advice from Devalera, according to
cable dispatches, that the irregulars
were free to lay down their arms and
go to their homes as soon as they
thought fit. 1t seems therefore to be
one of the Incidents marking the near
approach of the end of hostilities in
Ireland.
1t appears from the papers in the case
that. Notwithstanding the fact that the
Irish republic does not exist. those be-
levers In the Irish cause in this country
who subscribed to the bonds OF that
republic will not lose their money
through the change in the form Of gov
ernment. The moving papers. prepared
by Stetson. Jennings g. RussFll. indi-
cate that 1t is the intention OF the heads
of the Free State Government 70 honor
the paper of the republic. and that this
Is one of the reasons that the censerva-
tion OF the funds raised should be care
fully undertaken.
To Clear Graft Rumors.
The legal action. too. asks an audit
and accounting of the money that
Americans of Irish birth and lineage
subscribed to the Irish cause when
De Valera was In this country and be-
fore the Free State was esta blished and
also of all other funds he collected.
Ever since the floating of the bond
issue there have been rumors of mis-
management and speculation as. to
and what check was being kept Upon It.
A host of more or less circumstantial
stories were afloat from time TO time.
IL an audit is made. as seems probable,
the truth or falsity of these stories
will be established
Justice Burr. II was learned. originally
signed the injunction August IL. subject
to the filing of bond of $4,000 by the
appellants. The bond was filed yester-
day and approved by Justice Burr. who
signed the Injunction second time. 1t
is directed against the following banks
and safe deposit companies In which the
Irish funds are deposited
Hartman National Bank. In which
there is $4,000 in cash In the name of
Stephen M. O'Mara.
Guaranty Safe Deposit Company.
Central Union Safe Deposit Company.
Garfield Safe Deposit Company, in
which O'Mara deposited securities
valued at $500. 900 In his name and
that II Gilbert K. Ward. n former clerk
in the Office Of the Irish Republic, All
Fifth avenue. In this instance power
OF attorney was given TO Matthew Garth
Healy.
1t is alleged in the moving papers that
these deposits were made In May in vio-
lation OF q trust agreement under which
funds in this country were to be admin
istered by Eamon de Valera. o'Mara and
Bishop Fogarty.
Conspiracy Charged.
The complaint charges that De Valera
and O'Mara have repudiated and are
now regulating the Irish Free State as
the beneficiary Of funds raised In this
country and have planned and con-
spired and are planning and conspiring
TO withhold the said funds and property
from the Irish Free State and the Pro-
visional Government thereof and for
that purpose. to withhold the said funds
and property from the disposition by the
Dali Eireann In accordance with the
said trust agreement and particularly 60
withhold the said funds and property
from disposition by the Dali Eireann to
or for the benefit of the Irish Free State
or the Provisional Government thereof
and to retain the said funds and prop
erty for the benefit OF said group known
as Irregulars. or for the benefit Of the
Government which the said Irregulars
contemplate and are attempting to es-
tablish"
An affidavit submitted by Timothy A.
Smiddy, Envoy Extraordinary OF the
Irish Free State In this country and au-
thorized agent OF Michael Collins as Min
lister OF Finance, says
THE outstanding facts in this suit are
that the irreguars are carrying on re-
belion against the said Provisional Gov
crnment and against tho Irish Free State
and against the Dali Eireann ms a gov
erning body OF the Irish Free State
that the defendants cannon De Valera
and stephen NJ. O'Mara are
r~embers OF the said irregulars and CO.
openating with them. and that the funds
and property in question are so de-
posted MS TO be available to those re-
beiling against the rightfuI Government
Of Ireland, which is the beneficiary OF
the said funds and property
IL appears from Smiddy's AFFIDAVIT
that he came to this country in March
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CoutJuuad IN Para Thra.