Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-06-04
THE CUBAN POSTAL FRAUDS
RETRENCHMENTS NOW BEING MADE
ORDERED MONTHS AGO.
Reports Failed to Reach the POstmas-
ter Gcneral-Investigat Near
ing an End.

| 1t appears from investigation today that
| the very retrenchments that General BITS
| tow is now making in Cuba as the acting
| director general of posts were imperative
" demanded by the Postmaster General
| some months ago of General Hathoone.
From a source the authenticity of which
\ cannot be doubted it is said that upon the
presentation of the first report of Director
| General Rathbone, the Postmaster General
| was surprised at the enormity of the ex-
pense account and promptly wrote that
| official to begin a system of retrenchment
and REFORM in order that the expenses
might be Immediately reduced. General
Bristow is carrying out the instructions
which, If followed by General Rathbone,
would have saved the department much or
| the criticism that has been heaped upon It,
The Presidents Order.
| The Star has stated in a previous article
| that to insure an honest postal service in
| Cuba the President had ordered both the
| director general of posts anG the governor
general of Cuba to obtain the approval of
the Postmaster General upon all requisi-
tiers which showed n deficiency In the pos
tai affairs. A reporter of The Star learned
| today for the first Time that while reports
had been made monthly of the receipts and
expenditures of the island to the governor
| general not a single report ever reached the
Postmaster General.
In January the Postmaster General de-
| c;ded to look into the matter himself. and
| il was learned he wrote Il letter to General
Rathbone. directing him to report at once
the condition of affairs in Cuba, saying
| that he had not heard anything from him
| in long time and was de5irous of keeping
| in touch with events.
The reply to this 1t is said. showed the
Postmaster General that there were ex-
travagances In Cuba. but whether or not
they Were justified in view of the newness
of the service no one was able to state
However it appeared that the expenditures
were something like 100000. while the re-
ceipts were hut half that sum. This was a
condition which no one had ever dreamed
| of, and il upon this showing that the
Postmaster General immedia tely. 1t is said.
wrote to Rathbore ordering retrenchment
| throughout the entire service.
The Postmaster Generals Position.
The Postmaster General occupied a po-
sition similar to commanding general of
| an army who occupied an impregnable po-
| siton with but two methods of communi-
cation. and both securely guarded. said a
member of Congress today to a Star re-
porter. "Over one the governor general of
| Cuba was stationed, while the other was
supposed to be guarded by the director gem
eral of posts. One was dependent upon the
| other for the passing of acquisitions, and
both were responsible by the Presidents
| order to the Postmaster General. 1t did not
seem. under these circumstances that there
should be anything to arouse the suspi-
cions of the head of the Post Office De
partment. who felt satisfied that should a
deficiency arise 1t could not be paid until
he had given it his official sanction. Yet
Notwithstanding all these safeguards, the
enemy has entered the citadel, and now the
general is reorsanizing his army
He made the prediction that when the
matter had all been investigated and re-
| ports had been filed, it would be found that
the Postmaster General at Washington had
| done his full duty. and should not be called
| upon to bear the brunt Of any criticism.
The department., he said. had surrounded
| itself with the best safeguards that were
| known, and If the Presidents order had
| been violated, and that violation had
| brought into bad repute the Post Office De-
partment the men who were responsible
| for the omissions should be criticised, and
| not those who were blameless.
Investigation Nearing an End.
Daily reports from Cuba indicate that the
work of investigating the postal accounts
| is nearing end. Another fortnight 1t is
believed will bring to the Post Office De-
partment full reports of the irregularities.
In the meantime, Fourth Assistant Post
| master General Bristow is reorganizing the
service. and reports already indicate he has
saved by reduction of salaries and dismis-
sal of unnecessary clerks upward of $4,000
to the government. Matters are in such
shape that the Postmaster General believes
the shortage in Cuba will figure 500 600
If, as generally believed, the government
can attach the property of Neely, the
amount which must be reckoned as loss to
the government will be materially reduced,
and ii may be wiped out altogether.
There is absolutely no truth In the state
ment published this morning that the Post
master General had dated back the order
increasing Rathbone's salary three months
reporter of The Star learned this morn
ing from the Postmaster General that the
increase was made on June 10, 1899, and a
letter of that date notified General Rath-
bone and distinctly stated that the per diem
of So per day would be discontinued.
A dispatch from Oyster Bay states that
Governor Roosevelt has signed the warrant
of cxtradition for c. F. W. Neely. 1t has
been forwarded to United States District
Attorney Burnett
From New York comes the intelligence
that Neelys lawyer has said that he will
| fight the extradition of his client.