Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-05-08
NELLY DENIES GUILT
Post Office Official Under Charges
Interviewed.
POSTMASTER GENERALS STATEMENT
No Definite t. News Regarding the
Mans Status in Cuba.
PERRY HEATH EXPLAINS

l
| Chief Post Office Inspector W. E. Coch-
ran returned to the city today from Roches-
| ter, N. Y, where he went to get c. w.
! Nicely, the treasurer of the department of
posts for Cuba, who has been charged with
embezzlement. Inspector Cochran said he
| found Mr.. Nicely in charge of the police
| IN rochester. The post office inspectors
had been acting since Saturday under the
direction Of the War Department, with the
| approval of the Postmaster General.
He said this to explain the connection Of
the Post Office Department with the mat
| ter since it is we'll known the department
| OF posts for Cubais a separate institution.
| under the direct charge of the War De-
partment. although the Post Office Depart
| ment exercises a sort Of supervision. Mr..
Cochran said he found in Mr.. Nicely one Of
the most pleasant men he had ever met
and as much unlike guilty man as it was
possible to be- Mr.. Nicely, he said, had
| made no pretense at concealment.
He had registered at the Waldorf-Astoria
under his own name and gave his name on
the transport from Cuba which arrived in
least three weeks before he sailed from Ha-
vana that he would sail on a certain date
and on certain ship. and he had notified
the Post Office Department that he would
be at the Waldorf Hotel in New York at q
certain time, and that II his services were
needed in Washington he would come here.
Otherwise he would go west.
Nicely Denies Being Guilty.
In conversation with the accused Mr..
Cochran said he denied being guilty. and
said the matter would be entirely cleared
up in little while; that his accounts had
all been inspected and approved about q
| month ago. He seemed to take his arrest
NH GorNhy ool
| spectors to New York willingly. The police
Of Rochester In searching the person Of
Mr.. Nicely found s6.217 In cash and two
checks drawn to his own order for STA
each
There were no papers. so far as he knew,
| on his person which would in any way con-
meet him with the alleged embezzlement.
inspector Cochran said that the bail had
been fixed at $4,000 and afterward raised
to $4,000. The: prisoner promptly fur
ntshed bail in the form of two $4,000 bills.
and he is new dree. When asked if the
Post Office Department was pursuing an
investigation he said that far he
| knew it was not; that the department of
| posts OF Cuba under Gen. Rathbone had an
entirely different system of inspection, and
as far as he knew. was competent to in
VeStlgate any such case
Postmaster General Smith discussed the
| matter briefly with a representative of The
| Star today. He said that he had general
| knowledge Of the matter, but yet there
| were no proofs, so far as he knew, of the
| guilt Of Mr.. Nicely; that the Post Office De-
partment was in cable communicat ton with
Gen. Rathbone and that thorough investi-
| CATION of the affairs Of Cuba would I'M
| doubtedly follow. n
First Assistant Postmaster General Heath
| told a reporter Of The Star this morning
| that he knew Mr-lNeely and had always
regarded hipas as an honest and capable
man. He never had any business dealings
with him directly on indirectly. This state
a n Aaaf toll Ate.
patch. published in morning paper, con-
Meeting by inference his name with the
Nicely Publishing Company. Asked by a
reporter of The Star for any comment he
| had to make upon this subject the general
dictated the following statement:
Mr.. Heath Denies n Statement
al see q statement published from Mum
| Gle, Ind, this morning to the effect that |
am a stockhOlder in a newspaper there
| formerly owned by Charles T. w. Nicely,
| and insinuating that in some way It may
| be connected with a job printing establish
| ment in which Nicely was or may now be
| interested. 1 am not now, nor have been
| within twenty years. a stakeholder in any
printing establishment in Muncie. Two Of
| my brothers are stockholders in a corpora
| ton which three or four years ago pur-
chased a newspaper of Nicely. but that
property is In no way connected with the
Nicely JOD pruning establishment. They are
located three or four hundred yards apart
and have no connection, not even the most
remote.
THE newspaper company in which my
brothers interested does not do Job
printing Of any character. I know nothing
of Neelys business whatever, and my
| brother. who is directly interested In the
| newspaper property at Muncie, says he has
had no business connection with him, and
knows nothing about the printing done at
Neely's establishment. l do not know who
runs the Nicely office. or whether Nicely has
now any connection with any printing office
at any place. Neither do l know anything
whatever about the printing of supplies for
| the Cuban postal service. Personally, have
never had any business transaction with
Nicely, nor do l know anything about his
official transactions. They are now and al
ways have been under the direction of the
director general of posts for Cuba who is
| responsible for all printing for the island"
War Departments Views.
Secretary Root says that he has no IN
formation In regard to the alleged postal
frauds in Havana beyond what has been
published in the newspapers. The matter
| was Investigated by Col. Burton of the in
spector generals department by direction
Of Gen. Wood and the order for the arrest
of Mr.. Nelly. chief financial agent of the
United States postal department in Cuba.
was based a brief Geographic report
from Col Burton.
He gave no details of the alleged fraudu-
lent transactions, and said that he would
come to Washington and give the complete
results of his investigation to the authori-
ties. He left Havana on the transport Blu
ford Sunday night, and is expected to ar
rive at Fort Monroe in day or two Sec
rotary Root said that he had no informa-
ton Of prospective arrests of other persons
in connection with the matter, but said that
he did not expect to learn all the details
until Col. Burton's arrival in Washington.
So far as he knew no person connected
with the military establishment was In
vo1ved in the alleged frauds, which are
said to havekbeeff confined entirely to pos
tai officials. The question of the prosecu-
ton of the Offenders has been referred to
the Department Of Justice, and the matter
meeting today.
Discussed pS the Cabinet.
The cabinet had little business today and
spent the better part of an hour talking
over the alleged defalcation of Charles F.
w. Medley, eformer5 treasurer Of the Post
Office Department IN Cuba. Secretary Root
reported the facts to the cabinet and he