The evening times. [volume] (Washington, D.C.) 1895-1902, 1900-05-08
ALLEGED FRAUDS IN CUBA
The Charges Against Neely Con-
sidered by the Cabinet.
General Investigation of the Ameri-
can Administration in the Islands
PostOhzce Financial AEent-OpIn-
ions of Mr. Smiths Secretary.

The alleged Cuban frauds, growing out
Of the arrest Of Financial Agent Neely. Of
the Cuban postal system. charged With de-
faleations amounting to from $3.50 to
S1C0, 900. received the serious consideration
Of the Cabinet at its meeting this morning.
Secretary Root. who as head of the War
Department. has general charge OF the
Island, and Postmaster General Smith, who
is directl' over Nicely. presented all the in
formation which they had concerning the
alleged defsieations- They could, however
add little TO the accounts published in this
mornings newspapers.
II is believed that the amount OF the
frauds Will not materially exceed 81. .0G0.
The Administration. it is said, has no
proof as yet that the $500 found in Nee
ly's trunks was embezzied from the Postal
Department. but in order 10 be on the SAFE
side the sum was seized BY The postal ac-
thorities.
Pensing the return OF Inspector Burton
from Havana. there will be little room for
official action by the Administratio The
Inspector is expected TO furnish a full &C
count cf the conditions in Cuba, and with
the knowledge furnished by him Secretary
Root and Postmaster General Smith viii
! be enabled 10 take intelligent action IN
following up the alleged crimes.
The sentiment Of the Cabinet is believed
70 be strongly in favor OF pushing the
prosecution OF the offenders 10 the full
| The President is believed 70 be particU-
larly impressed with the need OF srrenu-
Gus action He feels that al the present
| time dereIiction OF duty by any American
official in our new possessions Will DO the
greatest harm 10 the nation and 70 the
policy OF expansion. He feels also that
-
crimes committed by the Americans IN
authority, must be most pernicious- Ac-
eordingly he means to carry the investi-
gation OF the Neely affair 10 its most Wig
OrOus conclusion II the enquiry should
indicate corruption in other departments,
they also viii be put under the closest
scrutiny. IL is not improbable that as the
result Of Neely's arrest there viii BE Wig
orous Inspections Of the American depart
ments conducting Official business in Cuba.
A report OF the case against Nicely has
been fled with Postmaster General Smith
Mr.. Smith was absent from his otice
a ;ng the Cabinet meeting and could
ne De seen this morning His secretary,
c E Dawson stated that the published &C
! counts Of the matter were substantially
correct although somewhat exaggerated
He said that the friends OF Neely were
| surprised at the charge brought against
( on his part. and they believe a satisfactory
[ ex 3lanation viii be forthcoming. His good
/ character he said, preclUdes their belief
/ in his guilt
: 1dr. Dawson stated that L was very pos
/ sibIe that Il might develop that the short
| axe in the accounts was due 10 confusion
| or nismanagement Of the pOstOfile ac-
| counts, Incidental 10 tne Inauguration 4
| the system in Cuba. He added that the
/ departure Of Mr.. Neely from Cuba prior 20
4 the date Of his leave had been by permis-
l sion Of his chief. Mr.. RathbOue.
! There was 10 cttempt al evasion OF con-
! Cealment, he said. On the part of Neely,
I and the War Department vas advised OF
l his address al every stage. He had b5en
{ ordered home by his physician Tor the per-
! Torrance OF a surgical operation. and his
early departure was authorized in order
( that he might gain a week by engsg ng
/ passage on the steamer leaving at tat
I time The amount Of shortage. S5il Ny.
/ Dawson, was Eearer S35,0o0 than S1Oo, ,0oO.
I which latter sum was stated in the morn
| ing papers as the probable amount.