Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1900-07-26
Nelly POSTAL FRAUDS
Postal Department Investigation
Proves Director General Rath.
bone Equally Guilty.
Nicely Got Away With ovsr $780,
0oe-Rathbone Approved
Neely's Accounts
he Drew q Per Dion Illegally
Lived in Excess Of . Large
Salary.

network of fraud. These findings are
made public in the report Of Mr. Bris-
tow, given out last night.
RATHBoNE IMPLICATED,
Mr.. Bristow finds5tflat Neely's embez-
Elements aggregated at least S131,7l3.
and says he was justified in recon-
mending the removal of Director Cen
eral Rathbone.
Whether or not the latter was guilty
with Nicely in the embellishments, he
says.there can be no doubt that in the
matter of unauthorized per diem ALLOW
ances, personal. expenses and warrants
cashed and unaccounted for, he #unlaw
fully appropriated to his own uss money
Of the Cuban revenues.
For this Mr.. Bristow ga Vs. he believes
Mr.. Rathbone should be required to an
swer.
NO CHECK ON NELLY.
Mr.. Bristow explains thatthe bureau
OF finance inaugurated by Director Gen-
eral Rathbone, of which Nicely was APP
pointed chief, was started July Z, 1893
This bureau was charged With the GUS
tody of all stamps and postal supplies.
The division of postal accounts,
changed July l. 1899, to division of the
.
n. Reeves. who was appointed by the
secretary of war.
The report says that no accounts of
the unbonded postmaster We're required
remittances being entered as cash sales.
ond the only information the auditors
Office had of these transactions came
Prom Nicely himself. There was no scheck
whatever on his transactions.
SHORTAGES SUMMARIZED.
From the accounts examined the re-
port says the minimum of Seely's EN-
bezzlements may be summarized as fol-
lows:
Shortage as shown by his own
records 1900. sc, 900
Excess of credit by destruction
of surcharged stamps definite
~ ascertained DETERMINATIONS. 101 Tia.
Total -. s131 ,T13s
This will be increased by the discov-
cry of additional sales of surcharged
4 stamps, but will not exceed si51 900 in
the aggregate.
The report says that Rathbone ap-
pointed Nelly, who had custody of the
stamps; Reeves, the only man who
could have a check on Seely's transac-
+ tions, and D. Warfield, chief of the btl-3
reau of registration. commission to-
destroy the surcharged stamps of
which Nelly had received s522.o0O. and
that Nicely and Reeves entered into
conspiracy to report a larger quantity
OF stamps destroyed than were actually
DESTROYED.
NEELYss PRINTING FRAUDS.
But, the report says. Neely's fraudli-
lent transact tons were not confined to
these embellishments, and, while the
amounts were small compared with the.
latter, they show the same official de-
pravity and utter disregard of the in
terests Of the public service
The connection between Nelly and
the Nicely Printing Company Of Nun
Gle. Ind. of which he was proprietor.
before he went to Cuba is then ex-
planned Nicely ordered from this COM
pany supplies for the department of
posts in Cuba
i The books of the printing company
show 1t received for printing $685..
while the bills paid and the money or.
der records at Muncie show s2lsl more
than the amount indicated by the books
) was paid. Some of the bills were paid
twice.
RATHBoNE,s NEGLIGENCE.
Rathbone. when asked Why ne APP
proved these accounts. said he did not
know until after Neely's arrest that
4 any printing was done at Muncle If
this statement Is true, says the report
he convicts himself Of the most utter
and indefensible negligence of official
duties
The department of posts purchased
from the Keyless Lock Company, of
indianapolis, s14.s74 worth of furniture.
This company paid Nicely s3.292 in two
checks--one of s2,972 and the other for
$3.50.
For what purpose this money was
paid him does not appear The only.
) reasonable conclusion is that it was
paid as Commission" subsidy or
bride for the privilege of supplying the
furniture.
B In July, 1899, the money available for
i salaries was delayed and at Neely.s
suggestion.
Rathbone authorized a warrant on
the unexpended balance for the fiscal
year ending June 80 for s7,25l This
sum was to be REIN bursed after the
July fund became available. but whe n
U Nicely obtained the warrant on the July
fund instead Of depositing it he cashed
ut and made no accounting of the
money.
When Nicely was assigned to duty in
Havana, January Z, 1880, his salary was
$780, The report sayss he was at this
time financially embarrassed. His ac-
count with the Union National Bank
of Muncie was frequently overdrawn.
February 9, 1899, he sent deposit Of
SEQ to the Muncie bank and in Febru-
arg and March his additional deposits
$3.50. Thus Nelly, with a
salary Of $3.50 a month was able within
three months to deposit sls59. conclu-
sive proof that his embezzement began
I'm February, 1899 In May he deposited
NJ, June 377B July 1908. August Sls,125,
e.Oct0ber - $50 and a number Of de.
posits Of lesser amounts were made
"A Asssfwards.
TIA report deals at considerable
4 le1Gth With the speculative ventures
:{ase which Nicely branched out in
III. fhSy included the West Indian
q 1lnliSg Company. In which he Invested