Virginian-pilot. (Norfolk, Va.) 1898-1911, 1900-05-09


OH April %. Slii997. while the books of the
Postoflice Department here indicate that
he should have had S2G6.672. The amounts
in his possession at that time. according
to tho report, were as follows:
Money advanced Major Lord, paymas-
ter. u. S. a., as per voucher, SiseO0
checks ana warrants, N7,oS6; cash on
hand as produced by chief of bureau and
counted by special agents. Slll.9io
Director of Posts Rnthbone on April 10
directed that n statement be prepared of
the money order and postal accouts OF the
Bureau of Finance up to tho 18th of April
On April % no directed that n further OK
animation be made, and the resulting re-
port Indicated that Neely's accounts wore
correct. and were so certified by the
agents. who, in concluding their state
ment, say:
THE manner In which these accounts
stamps. supplies and funds aro handled
reflect credit upon the chief OF the Bu-
rcau OF Finance, Mr.. Charles w. f. Nee
ly, and his assistants" 1t Is apparent
that an examination OF his accounts were
made in detail. as it is stated that there
was ''$l.09 in tray"
Since the establishment of the money
order system between the United States
and Cuba under the new regime there H. ;
been at all times a balance due the Post
Office Department OH account of money
order funds. The last remittance To
Washington was made on ArriI l, $50. 900.
and there is now due. Approximately
1924. Geo. 1t is said that these are the only
funds permitted to accumulate in tho
Cuban office, as all other postal revenues
are transmitted to tho military authori-
ties soon after their receipt by the Postal
Bureau of Finance.
CUBAN POSTAL SYSTEM
Postmaster General Emory Smith was
asked today as to the status or the postal
system CT Cuba. He said:
The Cuban Postal Department Is run
ming on an independent basis. General
Rathbone has direct charge OF the affairs
there. He makes appointments and has
general administrative authority. The
revenue from stamps etc. are transmitted
TO the chief of the Bureau of Finance
and by him passed to the military author
tiles. who have general charge of the
finances of the island, such as collection
of customs, etc. Tho revenues OF the
service are for the benefit OF the pcoplo
of Cuba. IL there should be n deficit in
postal revenues 1t would be made up
All postal officials are paid out OF the
revenues OF the island"
OFFICIALS DISAGREE.
1t was stated by department. official
today that for some months past there
has been considerable friction between
General Wood and Director Rathbone as
to the administration of the postal serv-
ice. General Wood. 1t is said in some in
stances, desired to make appointments In
the service. which Director Rathbonc con-
s!dered an infringement OF his rights. At
today's Cabinet session the question
arose as to whether the United States or
Cuba was responsible for the amount of
the defalontion. 1t seemed 10 be the opin-
ion or all the members present that Necly
was appointed by the United States ana
that In administering the affairs OF the
island this Government is acting In a
sense as trustee. 1t therefore is re-
spons!ble for the shortage. and eau pro-
coed against Neely's bondsmen for the
amount involved. It was practically set
tied, too, that Nicely would be taken back
10 Havana for trial before u civil tri-
bunal. Ii Is expected that the prisoners
council will contest any effort 10 return
him TO Havana. but it is tho opinion OF
the Attorney General that It can and
should be done.
THE TOPIC IN HAVANA
Havana, May S.-Thc postal frauds have
been tho principal topic of conversation
In Havana today, although as yet the
papers have scarcely alluded to the mat
ter. The Department of Posts admits the
shortage of $4,000; but further investisa-
ton has brought to light the fact that
in July last year tho receipts showed a
falling Off of about $4,000 from tho aver
aGe OF the months previous, and that this
shortage has been kept up ever since. 1t
appears that, about that time. Director of
Posts Rathbono gave orders for tho de-
struction of Sill,o00 worth of sur-charge
stamps. on account OF the issue of a new
stamp. This work OF destruction was left
In the hands of Charles +. w. Nicely and
his assistants. but 1t Is now believed that
none OF these stamps were destroyed, the
theory being that they were sent cut with
the new stamps
Tho Havana receipts amounted to about
$4,000 month. according to tho books.
but the other offices of the island showed
only $1,000 or $4,000 amounts palpably alb
surd. 1t 10 astonishing that the shortage
was not discovered before. because the re-
ceipts at Santiago or Matanzas alone
should amount TO nearly $1,000 Absolute
proof that something has boon going
wrong Is shown by the fact that Auditor
Barrie reports the receipts of the island
for the first FIVE days OF May as aggre-
eating 5000. Should this average be con-
tinued 1t would mean Il total OF more
than $4,000 for the month.
That others than Nicely are involved is
implicitly believed. although the evidence
as yet is not sufficient to justify their ar
rest. Nevertheless. should certain persons
attempt to leave the island they would
&c taken into custody.