New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-07-26


his additional deposits aggregated s.. $50. Thus
Nicely. with salary of 81 500, or $50 month.
was able within three months TO deposit
SlS59 ~, which is conclusive proof that his en-
hezzlements began in February 1SE. In May
he deposited SSS7 q; in June. S775 "a; in July.
S2o23o and a number of deposits of lesser
amounts were made afterward. The destruction
az surcharEed stamps occurred on September IL.
which indicates that Nicely at that time formed
the purpose of covering up a large defaleaton
IN the alleged destruction of these surcharged
stamps.
PURCHASES OF PosToFFICE FURNITURE.
The Keyless Lock Company. of Indianapolis.
Ind, is a corporation which manufactures post
ONCE furniture The Department of Posts pur-
chased cE5e from this company from January l.
ture- Nicely seems TO have been absolute in the
matter of purchases. not only of office furniture,
bur Of other supplies. This company paid Nicely
S3.2sf2 in two checks--one dated october 4. 1887.
drawn upon the Indiana National Bank. Of
indianapolis, for S2,9T2. and the other, dated
January /. 1900. for $500 For what purpose
iris money was paid him does not appear. The
only reasonable conclusion s that II was PAID
as a commission" subsidy OF bride. for the
privilege of supplying postofice furniture to the
Department Of Posts of Cuba.
DUPLICATE SALARY WARRANTS
Estimates for the expenses of the Department
Of Posts were submitted by the Director-General
monthly. When approved by the Governor
General of the island the money was deposited
in bank TO the credit of the Director General OF
Posts and paid out warrants drawn by Rath
bone. The approval OF the estimate for July.
1899 was in some wav DELAYED and the first
half months salaries Of the employees of the
Department Of Posts and the Havana Postoff1ce
for that month became due before the funds
were available for payment. Nicely suggested
that there unexpended balance for
the fiscal year ended June 80, warrants be drawn
upon that fund for the payment of the half
months salaries due. and after the funds for
July were received warrants could be drawn
and deposited. reimbursing that fund for the
amount so drawn Such proceeding was ap-
S4.251 81 We're drawn and the employees paid.
Warrants for the purpose of reimbursing this
fund were also drawn but instead of being de-
posted to reimburse the fund they were cashed
by Nicely and no accounting made Of the money
HAD BUSINESS ENTERPRISES
HTeely. with the money he had secured by EN-
lFkzlement and fraud. began branching out in
fsveral business enterprises. He organized the
OF dealing in cocoanuts. in which he invested
about S12.Jo0. He also became interested in
brick manufacturing plant near Havana, in
which he claims 70 have invested about $1,000
He had some mining schemes in South America.
in company with one A P. Taylor alias Philip
Troutfetter formerly OF the State Of Colorado,
who is said to be wanted by the PinkeTton De-
tective Agency for a crime committed in that
state. c. NJ. Rich, who was brought to Havana
from Muncie by Nicely as his assistant chief.
claims 10 have told General RathbonG in April Of
this year that Nelly was crooked Rathbone
denies having had any such conversation with
Rich Rich claims to be innocent. but he at
least had knowledge of Neelys entertainments
Reeves. the Assistant Auditor in a statement,
confessed to Inspectors Smith and FOsnes that
Nicely paid him $1,000 for concealing The fraud
in the destruction Of the stamps. Both Rich
and Reeves protest against any criminal de-
signs upon their part How much credit should 4
be given TO their statements ii is difficult to
determine.
FRAUDULENT PER DIEM
On December 81. 1895 E. G. Rathbone was
appointed Director General of Posts. His salary
was fixed az 81 900 per annum. At his earnest
request the Postmaster-Ceneral, January 30,
1890 allowed him s. per diem for expenses in
addition to his salary. Later on he claimed his
salary and per diem were not sufficient and on
June 10 the Postmaster-Ge General, in response.
wrote him that his salary should he increased to
IS 500 per anhum. and that with the compen-
sation fixed at $500. the per diem Of 50 would
CEASE On JsiEsss answer to this his letter tier:
this increased his salary but 1918 and indicated
very earnest desire thar house be furnished
him offleiai residence. In reply to this
letter the Postmaster General. on July &, wired
him. VIII make full allowance for house besides
salary" and on the Sth This means
that ii is our purpose that provision shall be
a6oTe she zed Of 5fT $500 ESQ eyer ana
On December 10 the Postmaster General is
sued the order fixing the salary at $500 max
ing il effective on August J. The salary OF the
Director-GeneTal, therefore, was from August
!. 1899. $500 per annum without per diem.
In addition TO the salary he was provided with
a house. The records Of the Department Of
Posts show that he continued to draw 50 per
diem in addition TO the Sc 800 as salary. and
when called upon by Colonel Burton for his au-
thoFity for this allowance submitted the letter.
suppTessing that part Of II prohibiting the per
diem
1t appears. therefore that Director General
Rathbone drew from August 1. 1899 to April 80.
1900 the sum Of 81 :3'i5 as a per diem. which was
unauthorized. and that the wing of the same
was fraudulent and therefore recommend that
he be required 70 reimburse the postal revenues
OF Cuba In that amount
IMPROPER PERSONAL EXPENSES
In the bills rendered for the purchase Of fur
niture for the official residence there appear
many items that were paid for from the postal
revenues that cannot be considered as house
furniture. Among these items are charges for a
coachman boots for coachman. boots for foot
man shirts collars and cuffs for coachman, etc.
Under what authority Of law these expenses for
clothing were made / am unable to state. Di-
General Rathbone claimed that IL was the
custom Of all countries that high officials should
be furnished with such attendants. and that they
should be clothed at the expense of the public
revenues When the character of these pur-
chases became known TO the Postmaster Gen
eral he wrote letter to Director-General Rath-
bone, in which he said.
I have to-day for the first time seen certain Of
Eeur bills as DirectoTCeneraI Of Posts which were
bills are not ONLY %ithont sutboTIf e OF [neSe
cation. but are scandaous. and never should have
been passed or paid. The auditor who is responsi-
bic 70 different department. was inexcusabie n,
sowiiIg mem ana your action IN presenting them
TOT aHowance was grossly reprehensible Without
waiting for review and reconsideration of these |
his 10y q rightful audit should al once rein-
properly paid. IN
Rathbone made numerous official trims as
Director-General of Posts ore in ApriI 1890 as |
q tour Of inspection around the island He was |
accompanied by his family. The report shows |
that not only Rathbone's expenses but the en- !
tire expenses Of his family on this trip were |
paid from the postal revenues He also made a |
trip TO the United States in April and May 1888 /
accompanied by his secretary The report |
shows that he had official business in the |
United States outside Of the city Of Washington. !