The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1900-05-09
RINK POSTAL FRAUD
Charged Against NeeIey Is
Havana'S Chief Topic.
CABINET TAKES ACTION
Uncle Sam to Stand Loss and
Send Medley Back.

papers have scarcely alluded TO the mat
ter The department OF posts admits
shortage of $4,000. but further investi-
CATION has brought to light the fact that
in July OF last year, the receipts showed
a falling off Of about $1,000 from the aver
| age Of the months previous and that this
| shortage has been kept up ever since.
It appears that about that time Director
| of Posts Rathbone gave orders for the
| destruction of $41100 WORTH OF surcharge
| stamps on account of the issue of new
| stamps. This work OF destruction was
| left in the hands Of Charles f. w. Neeley
and his assistants. but it is now be-
lieved that none of those stamps were
destroyed, the theory being that they
were sent out with the new stamps. The
| Havana receipts amounted to about $1,000
a month, according to the books, but the
other offices Of the island showed only S.
! 600 or $1,000 amounts palpably absurd
| 1t is astonishing that the shortage was
| not discovered before. because the re-
| ceipts at Santiago and Matanzas alone
| should amount to nearly 5000. Absolute
| proof that something had been going on
is shown by the fact that Auditor Bari
| reports the receipts of the Island for the
| first five days OF May as aggregating IS
| 900. Should this average be continued il
/ would mean a total Of more than $4,000
1 for the month.
That other than Neeley are involved Is
| implicitly believed although the evidence
as yet it not sufficient to justify their ar
rest Nevertheless, should certain persons
atetmpt to leave the island they would
be taken into custody.
| Neeeley has made investments here and
in other parts of the island. having as a
| jartner postal employee. Carrydon Rich.
who now holds the power of attorney for
! Medley. was yesterday appointed to I'll
| Neeley's place as chief financial agent
| of the Havana postoffice, but today the
| appointment was suspended.
! The military authorities know little. re-
| garding the matter beyond what Colonel
Burton inspector general, reported. for
| the department of posts has been virtual
1 " Independent of the military authorities
| and has reported directly to the post
master general The inspector general
| has merely made a quarterly inspection.
On Observation-Disclosures H
| On his former inspection tour ne found
/ a shortage of more than $4,000. but such
| plausible excuses were given that he
thought he was probably mistaken.
Governor General Wood has ordered
| that all property standing IN the name Of
I Neeley in Cuba should be placed under
| government control.
| Washington, May s.-The only matter
of interest which came before today's
cabinet meeting was the alleged heavy
| shortage in the accounts of Charles F.
Medley. formerly treasurer Of the post
! office department in cuba. Neeley has
been arrested in Rochester, N Y. and
the question arose as to whether the
| United States or Cuba was responsible
| for the amount Of the defalcation. It
| seemed to be the opinion OF all the mem
| bers present that as Kelley was appoint
! ed by the United States and that in adj
mlnistering the affairs of the island this
| government is acting, in sense. as
a trustee. it therefore. is responsible for
| the shortage and can proceed against
| Neeley's bondsmen for the amount in
| volved. 1t was practically settled. too.
| that Neeley would be taken back 10 Fa-
yana for trial before a civil tribunal Il
is the opinion Of the attorney. general
that it can and should be done
The postofice department has a report
from Agents Seybolt and Neal as to the
| amount of postal revenues In the hands
Isof Charles F. W. Neeley on April 25 At
| that time. according 70 these reports. he
| apparently accounted for all sums due
the government and II Is said by post1f-
! fee department officials that II Neeley
| enbezzled postal funds he must have Jug
| gled the figures and made false entries
| Immediately after the balance was strucE
| According 10 the figures at command here
| however there is an apparent discrep-
| ancy between the amount OF postal order
! funds as given by Mr. Neeley and the
! amount due the government Il wac stat
ed that he had on April o. S119,e30. while
| the books here indicate that he should
have had approximately .s290.090 On April
! 70, Director Of Posts Rathbone asked tha.
a statement be prepared Of the money
order deposit account Of the bureau II
finance. as made on the 18th q April
/ on April Q General Raehoone directed
| that a further examination ne made and
| the resulting report as stated. fn8Icat "a
| that Neeley's accounts were correct ana
were 50 certified BY the agents. who. IN
! concluding their statement AZ % the ex-
animation. say: ."The manner in xhich
those accounts. stamps. supplies AID
funds are handled reflect credit uuor the
chief % the bureau q fuaaca. afr
/ Charles F. W. Nselsy, ana his ass.s.-
ants"
i IS apparent that IN examination q
his accounts was made Fl detail ~ That
time as fl = stated thai there was s. g
( In t-ay
TAere has BEEN AZ all times a ha}anc-
due the 7.7z-ra7ce department on account
q money order funds on Ap-.l ship
nent q t-s 30 was made % this coau-
try On thzt account ard ta1-e Is noE
due sz240sa !, would Heeu ths, .hese
are the only funds par-nitted - ac~ru1-
! late n ths Cubsn offoe sn8 8 = sass
THAI al other 7ogtal -eTenses are trans
. rnlttes ~ the military sGf18-fttss ~ soon
as received IN re eareas q, aasres
&sw YORK MAJ f-Nuch ,ats-sst wa
shown AZ The federal buieine tosay 81
regard q, ,ae casa bau DEPOSITED vezser-
cay - c " r Seglsy = TIE C11aa
gestca5ce department who Wss a~reEfaa
OF Sunday a. Rochesss- ~ q rhsrze 4
r1i,ezz.ir,s- s7s 80 - r1vern-se1- Esnfs
ne = ts tszI sea1lrs3 Ezs GHpes1ssss 81
,hs FORM y -r8 fls.1e Eoif cs~--acat-s-
+ SeRhe- NzeleT nn- rs eogusas ?
Ts-5szy, wausd make AIRY statement Sc
-~za~s - znere tasz macy casae from.
sxccss thas & rzs furnishes ~ friends
- ~ Seessy"
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