The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1900-07-31

ment.
Washington, July 25.-The postmas-
ter general has made public the report
of the Fourth Assistant Postmaster
General Bristow, who investigated the
Cuban postal frauds. Mr.. Bristow
finds that Neely's embeZZelments
gregated at least $131, 713 and says he
was justified in recommending the re-
moval of Director General Rathbone.
Whether or not the latter was guilty
with Nicely in the embezzlements, he
says, there can be no doubt that in
the matter of unauthorized per diem
allowances, personal expenditures and
warrants cashed and u~naccounted for,
he u~nlawfully appropriated to his own
use money from the Cuban revenues,
and for this, Mr.. Bristow says, he be
Iieves Mr.. Rathbone should be requir-
ed to answer.
The report says there was no check
whatever on Neely's transactions.
From the accounts examined the re-
port says the minimum of Neely's en-
bezzlements may be summarized as
follows: Shortages as shown by his
own records, $50, 600; excess of credit
by destruction of Surcharge stamps
definitely ascertained $101 113; total
$131, 7f3. This will be increased by the
discovery of additional sales of surch-
arg stamps, but will not exceed $780,
900 in the aggregate.
The report says that RathbOne ap-
pointed Nicely, who had custody of the
stamps; w. W.. Reeves, the only man
who could have a check on Neely'S
r-o~-antianc nn1 n No rfnl6 chief
of the bureau of registration, a COM
mission to destroy the ~surcharge
stamps of which Nicely had received
1922, 900 and that Nicely and Reeves en-
tered into a conspiracy to report a
larger quantity of stamps destroyed
than were actually destroyed; but the
report says Neely's fraudulent trans
actions were not confined to these en-
bezzlen&nts, and while the amounts
We're small compared with the latter,
"they show the same official depravity
and utter disregard of interests of the
public service.
The connection between Nicely and
the Nicely Printing Company, of Mum
Gle, Ind, of which he was proprietor
before he went to Cuba, is then ex-
planned. The alleged sale Of the plant
of this company to Cowan, Neely's
business associate, the report says,
was not a bona fide transaction and 1t
is not believed Cowan ever paid Nicely
any money for his pretended interests.
Nicely ordered rom his company sup
plies for the department of posts in
Cuba.
The books of the printing company
show it received for printing 1881,
While the bills paid and the money
order records show $2.131 more than
the amount indicated by the books.
Some of the bills were paid twice.
Rathbonew when asked why he approx
ed these accounts said he did not know
until after Neely'S arrest that any
printing was done al Muncie. If this
statement is true, says the report, he
convicts himself of the most utter and
indefensible negligence of official du-
ties. The department of posts pur-
chased from the Keyless Lock Compa-
ny, of Indianapolis, $14,S79 worth of
furniture. This company paid Nicely
1922 in two checks. For what purpose
this honey was paid him does Up
pear. The Only ~reaSOnabl conclusion
is that it was paid as a commission"
subsidy" or bride for the privilege
of supplying postoffice furniture.
In July 1899, the money available for
salaries was delayed and at Neely's
suggestion Rathbon authorized a war
RANT on the uneXpended balance for
the fiscal year ending June S0th, for
$7,251. This sum vas to be reimburs-
ed after the July fund became availa-
VIC Ou( WHICH, ANCCly Oil
rant on the July fund, instead of de-
posting it he caShed it n made no
accounting of the money.
When Nicely was assigned to duty
in Havana January Z, 1899, his salary
was $500. The report says he was at
the time financially embarrassed. His
account with the Union National bank
of Muncie, was frequently overdrawn.
February 6, 1899, he sent a deposit of
1929 to the unci bank, and in Febru-
airy and March his additional deposits
aggregated 1880. Thus, Nicely, with
a salary of $3.50 a month, was able
within three months to deposit 1883
conclusive proof that his embezzel-
ments began in February 1899. In
May he deposited 1887, June SITS, July
1868, August s1s,125; October $40 $50 and
a number of deposits OF lessor amounts
Were made afterward.
The eport deals at considerable
length with the speculative ventures
into which Nicely lbranched out in
Cuba. They Included the West Trad
ing Company in which he invested S12,-
500; a brick plant at Havana, in which
he put $4,000 and some mining schemes
in South America. The report says
tina c. NJ. Rich, who was brought to
Havana as Neely'S assistant, told
Rathbone in April that Nicely was
crooked" Rathbone denied any such
conversation with Rich.
Inc report cOHlIuuluS says iN1Su
claims to be innocent, but he at least
had knowledge OF Neely's embezzle-
ments long before he claims to have
told Rathbone. Reeves confessed that
Nicely paid him $4,000 for ~concealing
the fraud in the destruction of the
stamps. Both Rich and Reeves pro-
test against any criminal designs. o
much credit should be given to their
statements it is difficult to determine"
December q, 1898, when Rathbone
was appointed director general of posts
his salary was liked at $4,000. AT his
request the postmaster general allow
ed him a per diem of S. in addition.
He claimed this was not sufficient and
June 10th the postmaster general in
creased the salary to $500, with noti-
fcation that with the increase the per
diem would cease. July 3rd Rathbone
complained that h increase amounted
to only 1915 and asked for an official
-as;5anao This WAS also allowed De-