Daily new dominion. [volume] (Morgantown, W. Va.) 1897-1906, 1900-07-26
RITHDONE IS GUILTY.
Bristow Charges Collision
With Nicely and Others.
EVIDENCE OF HIS wRosGDoTsG.
Nicely Grew Rich Rapidly, Despite Sal.
AIRY Of $50 Month-He Embezxied
Large Amounts = Postmaster Thomp-
sons Crookedness.


ter general made public the report Of
Fourth Assistant Postmaster General
Bristow, who investigated the Cuban
postal frauds. Mr. Bristow found that
Neely's embezzlements aggregated at
least Sl31, 7l3 and says he was justified
III recommending the removal of Di-
rector General Rathbone.
Whether Or not the latter was guilty
with Nicely i'll the embezzles mt, he
says there can be no doubt that IN the
matter OF unauthorized per diem: allow
ances, personal expenses and warrants
eashed and nnaecounted for, he unlaw-
fully appropriated to lisown use money
OF the Cuban revenues. For this, Mr.
Bristow said he believed Mr.. Rathbone
should be required to answer.
From the accounts examined the re-
port says the minimum Of Nicely EN-
bezzlements may be summarized as fol-
lows:
Shortage as shown by his own records,
$40, 900: excess of credit by destruction
OF surcharged stamps definitely ascer-
tanned, $101, 113; total, $l31, 731.
This will be increased by the discov-
cry of additional sales of surchargcd
stamps, but will not exceed $4,000 in the
aggregate.
The report says that Rathbone appoint
ed Nicely, who had custody of the stamps;
Reeves, the only man who could have
check on Neelys transactions, and ID.
Warlicld, chief of the bureau OF registra
ton, u commission TO destroy the sur
charged stamps, of which Nicely had re-
eeiyed S522, 600 and that Medley and
Reeves entered into a conspiracy to report
a larger quantity of stamps destroyed than
We're actually destroyed. Bnt, the repor-- says,
seely's fraudulent transactions were not con
iinea TO these embezzlements.
The alleged sale of the plant of the Nicely
frlntlng company at Muncie, Ind, to Cowan,
Neeiys business associate, the report says,
was not bonafde transaction. as it is be-
heved Cowan never paid Nicely any money for
ms pretended interest. Nicely ordered from
this company supplies for the department of
posts IN Cuba. The books of the printing
company show it received for printing I9S1,
While the bills paid and the money order rec
ords at Muncie show $2,l3l, more than the
amount Indicated by the books, was paid.
Some of the bills We're paid twice. Rathbone
said he did not know until after Neely's arrest
that any printing was done at Muneie II this
statement is true, says the report he convicts
himself of the most utter and indefensible
negligence of official duties.
The Departmental posts purchased from the
keyless Lock company, of Indianapolis sl4.674
worth Of furniture. This company paid Nicely
1922 in two checks--one of So 912 and the other
for S320-which might be commission, subsidy
or bride
In July, 1893, the money available for salar-
les was delayed, and. at Neely's suggestion,
RathboDe authorized warrant on the unex-
pended balance for the fiscal year ending June
30 for 81, pol. This sum was to be reimbursed
after the July fund became. available, but
when Nicely obtained the warrant on the July
fund.- instead of depositing it he cashed it and
made no accounting of the money.
Thus Nicely, with salary of $3.50 month,
was able within three months to deposit 81, $50
in bank at Muncie conclusive proof that his
embezzlement began in February, 1899. In May
he deposited sS37 June, $775 July 1903; Au-
gust, $13, 125; October, $50, go, and number of
deposits of lesser amounts We're made after
ward.
In Cuba, Nicely invested sl2,500 in the West
India Trading company, $4,000 in brick
plant in Havana and some mining schemes in
South America. The report says that @. M.
Rich told Rathbone in April that Nicely was
crooked" Rathbone denied any such con
yersation with Rich.
Reeves confessed that Nicely paid him $4,000
for concealing the fraud in the destruction Of
the stamps. Both Rich and Reeves protest
against any criminal designs.
December 81, 1898, when Rathbone was ap-
pointed director general of posts his salary
was fixed at $4,000. At his request the post
master general allowed him per diem of s5 in
and June 10 the postmaster general increased
the salary to $500. with notification that with
the increase, the per diem would cease. July
Rathbone complained that the increase
amounted to $3.50 and asked for official resi-
denee. This also was allowed. December 10
the postmaster general officially fixed RATA
bones salary at $500. making 1t effective
August |. But although the per diem was cut
off, Raihbone continued to draw it. When
called upon by Colonel Burton for his author
ity for that allowance, Rathbono submitted the
letter, suppressing that part of it prohibiting
the per diem The report declares he should
be compelled to reimburse.the-Uuban revenues
81 1856 for the per diem.
The bills rendered for furniture for the Off
eial residence. the report says, contain many
items snch as charges for trunk, gloves, dog
collar, overcoat, hats for coachman, boots for
footman, shirts. collars and cuffs for coach
man, etc
When the character of these purchases be
came known to the postmaster general he
wrote to Director General Rathbone seath-
ing letter and further said he ought to REIN.
burse the island treasury
I3a+h1.O,,a f,sda numerous official tr;,,., T.,