Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-07-26
therefore. may be summarized as follows:
records ........:........... sso.eoo7s
Excess Of credit by destruction
of surcharged stamps definitely
ascertained .................1 01, 11316

Total $131. 713. SO
This will be increased by the discovery
Of additional sales Of surcharged stamps.
but will not exceed $4,000 In the aggre-
gate
IAN interesting compilation has been
made from Neely's cash book. 1t shows:
Cash received from all sources. $3.50. 759. IS
Cash accounted for. ............. 49,. 49,
Leaving a cash shortage Of. sis, PTS. 4s
His cash books do not show an accurate
amount of cash received because there is
evidence that he did not enter on his books
all the cash received from unbonded post
masters. The first computation is consid-
cred the most reliable estimate of Neelys
embezzements that can be arrived at.
Numerous exhibits are submitted with
the report relating to Neelys financial
transactions in detail
Director General Rathbone appointed c.
F w. Nicely. chief of the bureau of finance,
who had custody of the stamps: w. H.
reeves. assistant auditor for the Island Of
Cuba, the only man who could in any way
have had check upon Neely's transac-
tons. and D. Married.. chief of the bureau
or registration. as a commission to destroy
the surcharged stamps. Nicely and Reeves
entered into conspiracy to report larger
quantity of stamps destroyed than were
actually destroyed. and thereby defraud the
Cuban government.
Fraud Not Confined to Embexzlement.
"Neely's fraudulent transactions, how
ever, were not confined to embellishments
only, and While the amounts thus received
by him were small compared with the
outright entertainments, yet they show the
same official depravity and utter disregard
foc the interests of the public service Be-
fore going to Cuba Nicely was engaged in
the printing business at Munc.e, Ind, being
the proprietor of the Neey Printing Com
pany. He had business associate or en-
ploye. named Cowan. Nicely claims to have
sold the Dla n iS haJ
however. that Cowan ever paid Nicely any
money for his pretended interest. Nelly
sent this company large orders for printing
Tor the department of posts in Cuba. Cow
an fixed the prices and rendered the bills
In the name Of Cowan & Co. Cowan says
ne was instructed to do this by Nicely. who
dld not desire the name of the Neeiy Print
Ing Company 10 appear in the business
Transactions of the department Of posts.
The books of this printing company show
that Cowan received from the department
OF posts for printing 1895 while the
bills rendered, marked paid. and the money
order records at Muncie, Ind, show that
he received s10.0G9.15 or 81, 131 30 more than
indicated by the books. The investigation
twice. and the whole transaction indicates
ccllus.on between Nicely and Cowan to
detraud the Cuban government.
Director General Rathbone, when asked
why he approved these printing bills and
permitted them to be paid-some of them
twice-said that he DID not know until after
Neeiy's arrest that there had been any
printing done at Muncie for the depart
ment of pests. If this statement is true he
convicts himself CT the most utter and in
detens!ble negligence of his official duties.
for every bill required his approval before
it was paid.
Neeiy's appointment.
Nicely was appointed to a position in
the Cuban postal service December -, 1895
and assigned to duty in Havana January
= lie
annum. He was financially embarrassed at
the time of his appointment. He did his
banking business with the Union National
Bank of Muncie, and his account was fire.
Quently overdrawn. On February 9. 1892
he sent deposit of $12o.75 from Cuba to
the Muncie bank. and in February and
March his additional deposits aggregated
s1.a30. Thus Nicely, with a salary Of 81 500.
or $50 month. was able within three
months to deposit 81 .s59.75. which Is con-
gan in February. 1899. In May he deposit
ed $S37.2S; in June $775.24: in July, s@53:
on August Ii, sl3 125.5O; on October 9.
S2o.25o. and a number of deposits of lesser
amounts were made afterward. The de-
struction of surcharged stamps occurred
September II. which indicates that Nicely at
that time formed the purpose Of covering
up large defalcation in the alleged de-
Struction of these SUrcharged stamps
''The Keyless Lock Company of Indianap-
oils. Ind. is a corporation which manufac-
lures post Office furniture. The department
of posts purchased from this company
from January l. 1899. to May l. 1900. s14,-
s73.25 worth of furniture. Nicely seems to
have been absolute in the matter of pur-
chases. not only of office furniture but Of
other supplies. This company paid Nicely
$3.g92 in two checks-one dated October
t. 1872 drawn upon the Indiana National
Bank of Indianapolis for s2,372, and the
other, dated january t. 1900, for $50. For
what purpose this money waSL paid him
6pGp The only SOM HE
clusion is that 1t paid a commits
sion. subsidy or bride for the privilege of
supplying post office furniture to the de-
partment of posts Of Cuba.
Estimates for the expenses Of the de-
partment 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 on warrants drawn by Rathbone. The
approval of the estimate for July. 1s.1.
was in some way delayed, and the first
half months salaries of the employees of
the department of posts and the Havana
post office for that month became due be-
fore the funds We're available for payment.
Nicely suggested that as there was an I'M
expended balance for the frcal year ended
June 80, warrants be drawn upon that
fund for the payment of the half month 8
salaries due, and after the funds for July
were received warrants could be drawn
and deposited. reimbursing that fund for
the amount drawn. Such proceeding
was approved by Rathhone, and warrants
amounting to $7.2J1. 81 were drawn and the
employees paid. Warrants for the purpose of
reinlbursing this fund were also drawn. but
instead of being deposited to reimburse the
fund they We're cashed by Nicely and no
accounting made of the money.
NeeIy's Business Enterprises.
Nicely. with the money he had secured
by embezzlement and fraud, began branch
ing out in several business enterprises. He
OF ganized the West Indies Trading Com
pany for the purpose Of dealing in cocoa
nuts. in which he invested about $3.50
He also became interested in a brick manu-
featuring plant near Havana, in which he
claims to have invested about $4,000. He
had some mining schemes in South Amer
lea, in company with one A. P. Taylor,
alias Philip Troutfetter. formerly of the
state of Colorado who is said to be wanted
by the Pinkerton detective 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 to have told General Rathbone In
April of this year that Nicely was crooked
Rathb0ne denies having had any such con-