The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1900-07-26
RATHBONE IS ACCIRF1
Formally Charged With e..
Spiracy With Nicely.
REPORT OF BRTSTOw
GIVES DETAILS OF STFArs
CUBAN POSTAL SERVICE

washington, July 25.-T7,s -
ter-general has made public n 21lllas-
OF Fourth Assistant PoStmss-s-- Port
erai Bristow. who inveStipsrs-s,- 'Fei-
Cuban postal frauds AZ ~. the
finds that Neely'S embezzIa,,,.--l'., llSIow
gregated at least S13l,TlS and loS az
was justified in recommendfn-- .s lie
moVal OF DirectOr-GeneraI Pa-t,f-- IT,
whether or not the latter vs. .y-.
with Nicely, he says that tber- ,S9-l.y
no doubt that in the matter ar 81, --t Dc
lzed per diem allowance of mr.
expenses ana warrants CaSheG ana a.
counted Tor, ne unlawfUlly appoiD+C5
10 use the money OF the United So
or TINS, MI Brlstow says. ne h4ria,,.1-,
Mr.. RathbOne should be reouir.'{ 5
answer. 10
The report says that no accor--.
the unbOnded postmaster We're rar-1f-.Ji-
remittance being entered as cash slr--'
and the only information the su5ir[-S'
Office had of these transactions -r,,.9H
from Nicely himself. There W. 20
check Whatever on his trans4ryil----@'
FROM the accounts assigned. the -
port says that minimum OF NeeIv's a,r
bezzlements may be summarized = fIi
lows: -o--
Shortage as shown by his own rs,
Ords, $30,600; excess of credit nv ~
structiOn Of surcharged statement
definitely ascertained, $1Ol. lib, total
S131. 713. '''i
This will be increased by the disco,,-
cry Of sales Of Surcharged starnps brr
will not exceed $150,O0O in the aggre.
gate.
The report says that Rathbone an.
pointed Nicely. who had custody OF ~
Reeves 10
could have a check on Neely's transac-
lions, and d. Warfeld, chief Of tba
bureau OF registration, a commission IN
destroy the Surcharged STAMPS of
which Nicely had So, 600, and that NaeTv
and Reeves entered into a. cOnspiracv
10 report a larger quantity of stamps
destroyed than were actually DESTROYED
But, the report says, Neely's fraudn-
lent transactions were not confined n,
these embeZZlementS, and WHY tina
amounts were small, compared with the
latter, they show the same declivitv and
outer disregard for interests Of the public
service
Printing Deal Exposed.
The report sets forth the details Of nu-
merOuS transactions with Neely'S print
ing house at Muncie, Ind. through which
the government was charged large sums
Tor printing and much smaller amounts
RENTED to the printers Il is also shown
that Nicely bought furniture through an
Indiana house. to be sent to Cuba, and
that the firm allowed him a Commission
of $2,213 on a Sl4,S74 bill of goods"
After showing that Nicely was financial
ly embarrassed when he went TO Cuba.
and that his salary was only $50 month,
the report deals at considerable length
with the speculative ventures into which
Nicely branched out in Cuba. They IL
clude the West Indian Trading company.
in which he invested Sl3,5O0. "A brick plant
at Havana, in which he invested S-000,
and some mining schemes In South Am-
erica.
Mr. BristOw submits evidence that the
thefts of Nicely began a month after no
went to Cuba
The report SAYS that C. R Rich, who
was brought to Havana as Neely's assist
ant. told Mr.. RathbOne that Nicely was
crooked" RathbOne denied any such IL
formation.
The report says:
Rich claims TO be innocent but he ar
least had knowledge Of Neely'S embeZZle-
ments long before he claims 20 have tod
R2thbOne. Reeves confessed. that Nicely
paid him $500 for cOnceallnS the fraud
in the destruction of the stamps Both
Rich and Reeves protest against any
criminal designs. How much credit
should be given TO their statements II IS
difficult 10 determine.
Rathbone Gets Fat Pickings.
H.
pointed director general Of posts, his sal
airy was fixed at $4,000. At his request
the postmaster general allowed him a
per diem OF s. in addition. He claims this
was not sufficient and June - the post
master general increased the salary 70
$3.50. with notification that with the in
crease the per diem would cease. July s.
RathbOne complained that the increase
amounted to 500 and asked for an official
residence. This was also allowed Dec
RathbOne's salary at $500, making II e.
fectiYe Aug. !. But although the PEI
diem was cut OFF, RathbOne continued %
draw it. When called upon by COlone
Burton for his authority for this allow
ance, RathbOne submitted the letter
sUppreSsing that part of IL prohibiting
the per diem.
The bills entered for furniture for Jhs
official residence, the report says. con
tain many items, such as clothing, trunks
dog collar, OVercOat, hats for cOachmaL
boots for cOachman. shirts, collars and
cuffs for cOachman, etc
In November, 1899, when his family was
in New York, he charged 1886 for eight
days in New York, while waiting lor
steamer
The report also. calls attention to a war
rant for $500 drawn by RatnbOne, June 81
1889, for which no accounting was MADE
and another 500 warrant was drawn ID
May. 1t says:
There stands against him, therefore
the charge of unlawfUIly appropTiarlns
$1,000 of the Cuban postal funds Tor MS
own use
The report also calls attention 10 many
other expenses by RathbOne for which no
vouchers were filed, although they c'u-l
have been easily obtained For some
months miscellaneous expenses asSrreat-
ed as much as $3.50. Such items as Re
pairs. $3.50; Freight. $50. Reeves *
planned that he passed such accounts D.
cause they had been allowed by the ~
rector general. The report does Ao-
credit this, saying:
"The evidence is too strong of c7L-u-
sion between Nicely, Rathbene ana
Reeves