The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-05-12

the other off1c1alS OF the department. lie
brought with him documentary evidence
touching the postal frauds, and as Secre-
tary Root was not able for lack of time TO
go over the papers he took them to the
Cabinet meeting for further consideration.
Colonel Burton then said that he had Moth
ing to communicate TO the press regard
ing the matter under investigation, and he
felt that 1t would be improper for him TO
| talk OF the inquiry at all at this stage save
to the officials of the government. He
wished IL understood that up to the time
he left Havana the inquiry into the postal
frauds had been conducted by himself and
the United States postal authorities had
nothing to do with II.
1t is expected that the State Department
viii take part in the extradition proceed
ings In the Neely case, assuming that the
New York authorities are disposed to honor
of Nicely. The actual warrant of surren-
der must be issued by the State Depart
ment, and in some instances the depart
ment has undertaken to pass judgment
on the question as to whether a prima
facie case had been established sufficient
to warrant the granting of the request In
view of the official character of the in
vestigation in Neely's case. however. it is
said that the departments action will be
Iurely formal
CONSIDERED BY THE CABINET.
The requisition for the extradition of
Neely is now on its way here from Havana.
This statement was made after an un-
usually long Cabinet meeting to-day. AS
soon as the requisition reaches Washing
ton IT will be turned over to the attorney
general for presentation to Governor Roose-
Welt. Secretary Root brought with him to
the Cabinet meeting the report made by
Colonel Burton on the Irregularities in the
financial affairs of the Cuban postal sys-
| tenn. and the members or the Cabinet were
reticent as TO its contents. 1t was stated,
however, that up to this time nothing au-
:horitative had been received by the gov
ernment which tended to impicate in these
Irregularities any one except Mr.. Nicely.
Major Rathbone, the director of posts has
not been relieved from duty, and it was
stated that there is no evidence at hand
that would warrant such action. Mr..
Rathbone, 1t is stated. so far as the gov
crnment is aware. is guilty of nothing more
serious at the most than failure to report
the fraud perpetrated by others.
The postmaster general said to-day that
no confirmation had been received from
Mr.. Rathbone as to the reported confession
at Havana. The last cablegram from Mr..
Rathbone was received late last night. The
department has for some time been in pos
session of report from Director Rath-
bone in which he states that all the sur
charged stamps in Seely's possession at
the time the discovery was made were
destroyed by Neely. and that this was done
in the presence of four witnesses. The
officials in the stamp division are still en-
gagged In preparing a statement of all
stamped paper furnished Nicely. This has
been found difficult task, as some orders
were sent through the Postoff1ce Depart
ment and others directly to the Bureau
cf Printing and Engraving and the postal
card and stamped envelope contractors.
When payments were made the drafts were
sometimes sent to the Postofice Depart
ment, at other times to the treasury and
In two instances to the contractors. In
regard to the money order funds due this
government 1t is said that it has often
been impossible for Director Rathbone to
remit by check. as the banking facilities
at Havana are limited. 1t has therefore.
1t is said, been necessary to send the coin
POSSIBLE to make frequen. shipments the
funds have necessarily accumulated.
During the afternoon Colonel Burton and
Deputy Auditor Lawshe, who has been
designated by the postmaster general
to proceed to Havana to aid in the
further investigation of the alleged frauds.
conferred with Assistant Secretary Meikle-
john regarding the postal frauds. Appar-
emily the exhibits brought up from Havana
by Colonel Burton were not regarded by
Secretary Root as constituting formal
report, for the secretary made the an
nouncement this afternoon that the report
had not yet been submitted He said this
in answer to an inquiry as to whether the
coloners report tended to implicate other
persons with Neely. However, Secretary
Root occupied nearly two hours in telling
the President and his colleagues In the
Cabinet what Colonel Burton had COM
municated to him, and in explaining the
line of action he believed should be pur-
sued in prosecuting Neely. 1t did not ap-
pear that other persons beside Neely had
been implicated. but on the other hand the
cNlucHCc WdS 80 iuSoHiplctc liidl IL WdS not
certain either that Neely had no confeder-
ates. The Cabinet was convinced that there
should be further investigation on this
point.
Meantime. 1t was decided that there
should be no arrests in Cuba on suspicion,
and that only upon satisfactory prima
facie case should any suspect be put under
detention. There also will be no suspen-
sions Of the officials in Cuba except upon
satisfactory proof that their continuance in
office retards or obstructs the investiga-
tion. Indirectly this statement covers the
proposed abolition of the Office OF director
of Cuban posts and the merging of the post
Office management in the island with the
military administration as II stood origin
ally. Some such action may follow In the
future as the weak spots in the existing
system are developed, but up to this
moment the President has done nothing in
that direction.
Attorney John ID. Lindsay, who Is men,
ber of the New York firm having charge
of Neely's case. says: "Mr. Neely Is
charged by formal complaint before Com
missioner Shields in New York with a vio-
lation of a United States statute. He is
not only willing but more than anxious
TO meet and defend that charge in conf
dence OF the result. He is willing to be
tried upon IL or upon any other similar
-, H.,