The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1900-07-26
SAYS RATHB0NE, TOO, IS GUILTY.
BriStOW's Report the Cuban Scandals Calls for
Director Generals Arrest-Detai1S of the
Schemes That Robbed the Government.

J Washington. July -l-E-tc@ e. T:sthhoae
| formerly Director Of Posts in The Island
| Of cuba. who has been practically uIsieE
arrest ever since he was removed from Of
| flee. viii b.. formally arrested as result;
| of Fourth Assistant Postmaster General
| Bristnw's report implicating INN in the
| postal frauds.
| Copies Of Mr.. Bri-rov's complete report
! We're TODAY furnished 90 Senator Pl3tt
| chairman Of III" special committee of the
Senate iuvcsiigItirE the Cuban postal
| frauds. and to Secretary of War Foot, for
;rausmittaI 10 Governor General Wood At
Havana. IT is expected that upon jhc rs-
ceipt of the report General Wood will AT
| once orIe. the arrest of Mr I;sthLole. 1t
| is understood that the fun report and o.
hihl.s are 20 bc printed :or tine senate com
mittcc. and will then be made public.
In the meantime. Postmaster General
Smith CAV" out = summary # Tie report
to-day. This summary SItcs substantially
what has horojofurU been reported regard
Ing Tin" f"cUiatiouS nf g. =. ". N"vly as
Chief 0f ihe Bureau of Finance. but IT
makes out q worse ease against Director
ka'hburc than had been generally expected.
Fraud Charged.
Heretofore no one connected with the
Pos. ONCE Department would TAX" tn,
bone had heon guilty "f anything mote
than CtrelcSSucSs In sup"ry Using the al
miuistrttirn Of ia" department Of Posts
and 10 extravaganza in his personal eN-
pcUs"s. which Were charged to the Cuban
postal revenues. Mr.. Bristow's report al
leGcs. not only carcics sucss and cXtrava-
CHuCc. but fraud as well. charging that
Rathbone had warrant for 500 drawn In
his favor; that he had il Cdsh,i and ihat
he failed to account for the money.
The total direct embellishments are rather
smaller than had been supposed AZ the
time that Nicely was arrested. Mr. BriS'ow
foots them up as amounting to SlS'.'B-s9.
This total woulI H. considerably increased
IL II could be ssccrtainsd exactly how
much r:oncy has been expended in Unrec-
essary expenses or charged up as ""X-
penses" and poCkctcd.
Postmaster General Smith said tonight
that Il was for the War Department and
the military government I'm cuba to act
in the case Of Mr. Eathbone; thai the
Post Office Department had no authority
over him or over other officials in Cuba
He injimatel that If Nr. Rathb9ne were
in the United States he would Toe arrested
Nicely. Shortage.
Nr. Erisjow explains that :he bureau or
Finance .iudUgur:tt,,i hV Director General
Rathnone, OF which Nicely WAS appointed
chief. We started July !. 1899. This bureau
was charged with the cusJo ly Of all amps
and postal supplies The division oi postal
accounts. changed July l, 1899, 70 division
Of the Auditors office. was IN cfGrSe OF
Doctor ". II. Reeves. who wIs APPOINTED
b. the Secretary OF War. The report says
that No accounts Of tn. uubOn'.,d Post
master Were required. rcHItit-icei Inns en-
tered cash sales. and the only l:iJrna-
tiun the Auditors office had Of these trans
actions came from Nicely himself. There
no check. whatev"r. on his trarsac-
items. From the accounts examined. the re
port say. the minimum uf Nicely : smh..z-
element may be summarized IS follows.
Shortage as shown 10y his own records.
S3".0.
Excess ~ credit by destruction Of sur
charged stamps. definitely asccrt,iir-d. Slcl,-
III.
Total, SIS. ia.
This Will be Increased by the discovery OF
afiit ....al sales Of sUTcEarEct STAMPS but
will not exceed sl50oDJ In the aS;;TcgaIe.
The report says that RajhbcEc appointed
Nicely. who had custody of the stamps:
Reeves. the only man who could have
check on Ncely's transactions. and j.. War
field. ,hief Of the bureau of Registration.
commission 4" destroy the surCharssd
stamps. Of which Nicely had received So
Go, ana that Nicely and Reeves entered intl
a conspiracy :" report "A larger quantity
Of stamps destroyed than We're actually de
Strnye1. But. the report says. NCciY'S
fraudulent transactions were not confined
to these entertainments and while the
amounts Were small compared to the latter.
they show tn. same official depravity AMI
utter disregard Of the interests Of the pub
lie service"
Indiana Connections.
Tho connection between Nicely and the
Nicely Printing Company of MunC.c. Ind,
Of which he was president and proprietor
before he went tn Cuba ia then esp.o.iutt l.
The alleged sale Of the plant Of this com
pany tn C"waa. Neeiys business assoCi-
ate. the report says. was no; a bonH-fie
TRANSACTION. "a IL is not believed Cowan
ever paid Nicely any money for his pre-
tended interest. Nelly ordered from this
company supplies for the Department of
Posts In Cuba The books Of TN" printing
company show ii received for printing S,92
Will. tho bills paid and the money order
records at Muvcie show that g Isl more
than tho amount Indicated by the books
WAS paid some az the bills were paid
twice. ItathboUc. when asked why he APP
proved thes. accounts. said he Ill. not
know until after Ns.lgS arrest that any
printing was done at Munci". II. this state
mrut ia true. SAYS the report. h. ConNirtS
himself Of the most utter and iniefensibe
negligence 81 official duties.
The Department Of Posts purchased from |
the Keylcss Lock Company OF indianapolis !
paid Nicely g.. ~ in two checlSs-one Of So,3'2 |
and the other for Si1d. For what purpose !
this money was paid him does not appear.
The only reasonable conclusion is that II |
was paid rs a commission" subsidy or |
hribe for the privileges of supplying the |
In July. 1899. the money available foy sal !
aries was delayed. ard at Nc"ly's suggestion |
Eathbone authorized warrant on the I'M
sxpendcL balance for the fiscal year ending !
June 2" for ST.25i- This sum was 20 he rs!m- |
bursed after the july fund became avail |
ahis. tll Mn'h Nef'lN ttlsaItlf u Nf'T hflIIdtt
on the July fund. instead Of dcp1sitiIic ii. |
he cashed it ard made 10 accounting of the |
money
When Nicely was assigned 10 duty in fta-
yaua January :. 1889. his salary WAS Sl.S,5. |
The report says he At this time f.nau- /!
ciaIIy eInharrasS d. His account with the |
L Mon National Bank Of MuIicie fr,- !
queuily ovcrdrawn. |:
February 6. 1899 he sent deposit Of $50 |
to the Muncie hank. and I'm February and |
March his additional deposits aggregated |
81 80. Thus, Nicely, with salary of Sial |
a month. was abb, within three. months to /
depoSit ST S59-cOnCluSIyc proof that his en-
l,eZzlencnt hcE IN in F.hru4ry. 1899 In I
Nav he deposit, 4 sS..1. Jun. $-.5: July. $40.
August sI3 i2j; october. So 80. and a mum
Der Of deposits os lesser amounts We're made |
afterwards.
Rathbonc's Graft
The report deals At considerable length |
with the speculative ventures into which
y eelv branChcd out in Cuba. They inc!u!- I
pd the West India Trading Company in 1
v hich he invested sle.Jr. brick plant al /
in which he invested S2ruat and
some mining sch, mes in South America. The
brought to Havana as Neely's assistant. /
told Ratibone In April that Nicely was |
crooked" Eathbone denied any such CON
ersatiun. The report. continuing. says:
Rich claims TO be innocent. 1ut h.. at 4
least had knowledge Of N.eiy's erlteZZlc-
luents long before he claims to have tod /
i;lthbone. Reeves confessed that Nicely paid
him sia0 for COEcealing the fraud in the
Of the stamps Both Rich and |
Reeves protest against any criminal Ce-
signs. How mitch credit should be given TO
,heir statements IL Is ditic"it 20 '3rGernitnr' -
December 81. 1898. when Rathl.une was .p-
poiutea Director General OF Posts his sal I
L