Barre evening telegram. (Barre, Vt.) 1898-19??, 1900-05-19
POSTAL FRAUDS
Stated That Rathbone's Suspension
Will lie Permanent.
BLOCKED WOODS INQUIRY.
batter Filed with War Department
II Protest Against Continued Op-
position to Examination of
the Postal Vouchers.

New York, May ia dispatch to The
sun from Washington says: Officers OF
the administration are amazed mt the
extent of the Cuban postal frauds. and
as the evidence accumulatcs 1t is said to
strengthen the determination of the pres
idont and the members of the cabinet
that everything possible shall be done to
bring to trial every man implicated, ei-
Their directly or indirectly, in the frauds.
1t is certain that the suspension of d.
rector of Posts Ka1hbonc will be pcrma-
ncnt. Fourth Assistant Postmaster
General Bristow goes to Cuba with fun
authority as Mr.. Rathbonc's superior to
relieve him from duty. He carries with
him full power to dismiss Mr.. Rathbone
from the postal service, and officers here
say they will not be surprised if this is
done.
1t is not believed that Director Rath-
bone is at all connected with any of the
irregularities. but he is being severely
criticised for his failure to allow full III
vcstigation of all his vouchers by the
military authorities of Cuba. When the
postal service was established, Director
Rathbone was placed in full control and
was not subordinate to the military gov
ernor except when he had to draw from
the governor sufficient funds to make up
the deficit in the postal accounts caused
by Il surplus of expenditures over the
regular receipts.
A plan for this was agreed upon, the
treasurer of the island issuing warrants
to Director Kathbone drawn upon the
funds in the general Treasury. These
funds were largely made up from the
customs receipts of the island, and during
General Rrookc's administration in Cuba
the warrants were issued without much
complaint as to the conccalment of the
vouchers showing expenditures.
General Woods Attitude.
When General Wood succeeded Gen
cral Brooke, he ut once took the position
that as the customs revenues were being
used in part to support the postal scrv
ice the military authorities had IL right
to examine all accounts of the postal
service and to require Director Rathbone
to submit his vouchers in support of his
financial statements. These General
Wood had difficulty in obtaining. and he
complained to the war department re-
garding the matter.
Director Rathbone did not, according
to the officers, absolutely refuse to allow
any one to see the vouchers, but they
were kept in the postollice building in
such way as not to he accessible when
the military officers desired to inspect
them. \ high officer of the government
said that whenever General Wood made
any effort in the direction of examining
these vouchers he WAS met with Il quiet
resistance which emphasized the conten-
ton of Director Rathbonc that he was
not under the authority of the war de-
partmcnt.
This question came to Secretary Roots
attention when he was in Havana, and
after his return from Cuba General
Wood filed with the war department a
written protest against the continued OPP
position to an examination of these
vouchers. The matter Went SO far that
Director Rathlonc was informed that it
might become nee cssary to have all the
vouchers removed from the pustoliice
department in Havana to the military
headquarters.
General Woods protest was sent to
him for remark. and the matter was
pending when the discovery of Ncely's
alleged defalcation came to light.
1t is said at the war department that
it was thought from the first discovery
that Nicely had ;ccomplccs. There had
been inspections of the accounts of both
Nicely and the auditor. The latter was
supposed TO act rs Il check on Nicely. this
being the system in the postal service.
The fact that the discovery was hot
made sooner is attributed to an alleged
understanding between Nicely and Reeves.
the auditor Colonel Burton has been
over the financial reports. but had moth.
ing to confirm any suspicious until he
discovered Necly's private book. This
showed such statements as convinced
him that something was wrong and led
to II closer inspection that brought forth
evidence of fraud.