The Savannah morning news., 1900-07-26

II Rathbone Was Not In CoIluston
with Neely, Bristow Says He Was
CriminnIIy CareIess-shOuId Also
he Prosecuted for Misappropriat-
ing Island Postal Funds.
Washington. July 25.-The Postmaster
General has made public the report Of
Fourth Assistant Postmaster General
Bristow who investigated the Cuban pos
tai frauds.
Mr. Brlstow finds that Neely's embex-
elements aggregated at least ,7lS. and
says he was justified in recomme ndins
the removal of Director General Rath-
bone.
Whether or not the latter was guilty
with Neely in the embezzlements, he says,
there can be no doubt that in the matter
of unauthorized per diem allowances, per-
sonal expenditures and warrants cashed
and unaccounted for. he unlawfully ap-
propriated to his own use money from the
Cuban revenues. and for this. Mr.. Bris-
tow says, he believes Mr.. Rathbone should
be required to answer.
The report says there was no check
whatever on Neely's transactions. From
the accounts examined the report says
the minimum Of Neely's embezzlements
may be summarized as follows:
Shortages as shown by his own rec.
ords. $SO,6OO; excess of credit by destruc.
tlon OF surcharged stamps definitely as
cerained. siO1, ,l13; total, 7l3.
This will be increased by the discovery
of additional sales of surcharged stamps.
but will not exceed $4,000 In the aggre-
gate.
The report says that Rathbone appointed
Nicely, who had custody of the stamps
w. II. Reeves. the only man who could
have check on Neely's transactions,
and D. Warfield. chief of the bureau Of
registration. commission to destroy the
surcharged stamps of which Neely had
received $522. 900 and that Nicely and Reeves
entered into a conspiracy to report a larger
quantity Of stamps destroyed than were
actually destroyed. But. the report says
Neely's fraudulent transactions were not
confined 10 these embezzlements, and
while the amounts were small compared
with the latter they show the same on.
cial depravity and utter disregard of the
The Nicely Printing Company.
The connection between Neely ana the
Nicely Printing Company of Muncie. Ind,
of which he was proprietor before he
went to Cuba, is then explained. The al
legged sale of the plant of this company
10 Gowan. Neely's business associate, the
report says, was not a bona fide transao-
tion as II is not believed Cowan ever paid
fnr hI- daA In
terest. Neely ordered from this company
supplies for the department of posts In
Cuba.
The books of the printing company show
1t received for printing 1887, while the
bills paid ana the money order records al
Muncie show 81 131 more than the amount
indita ed by the books was paid. Some Of
the bills were paid twice Rathbone when
asked why he approved these accounts
said he did not know until after Neely's
arrest that any printing was done at Mum
Gle. II this state ement Is rue says the
report, he convicts himself OF the most
utter and indefensible negligence of Of
fetal duties.
The department Of posts purchased
from the Keyless Ldck Company of In
dianapoIis S14.s79 worth Of furniture. This
company paid Neely 1892 in two checks,
one for s2,972 and the other for $500 For
what purpose this money was paid him
does no, appear. The only reasonable
conclusion is that IL was paid as a com
mission" subsidy" or bribe for the priv
ilege Of supplying postoffice furniture.
In July. 1889. the money available for
salaries was delayed and at Neelys sug-
gestion Rathbone authorized a warrant
on the unexpended balance for the fiscal
year ending June 30 for S,251. This sum
was to be reimbursed after the July fund
became available, but when Nicely obtain
ed the warrant on the July fund, instead
of deDositing II, he cashed II and made
no accounting for the money
How Neely's salary Grew.
When Neely was assigned to duty In
Havana, Jan. T. 1899, his salary was 81, 800.
The report says he was a the time finan-
clally embarrassed. His account With the
Union National Bank Of Muncie was f-e-
quently overdrawn.
FEB. g. 1899, he sent a deposit of 1929
to the Muncie bank and in February and
March his additional deposits aggregated
1850. Thus Neely. with a salary OF $3.50
a month: was able within three months
TO deposit 81 $50. conclusive proof that his
entertainments began in February 1899. In
May he deposited $s37. June $775 July $685.
August $l3,i25 October s2025O and a num-
Der Of deposits of lesser amounts were
made afterward."
with the speculative ventures into which
Nicely branched out In Cuba. They in
cluded the West India Trading Company
in which he invested $12,5OO. brick plant
at Havana, In which he put $4,000. and
some mining schemes in South America.
The report says that G. M. Rich, who
was brought to Havana as Neely's as
sistant, told Rathbone in April that Nicely
was crooked" Rathbone denied any
such conversafion with Rich
The report continuing, says
"Rlch claims 10 be innocent. but he az
least had knowledge OF Neely's embezzle-
ments lorg before he claims to have told
Rathbone Reeves confessed that Neey
paid him $4,000 for concealing the fraud
In the destruction of the stamps. Both
Rich and Reeves protest against any GRIM
inal designs. How much credit should be
given to their statements It is difficult to
determine"
Rathbone Worked His Pull.
Dec. p. 1898. when Rathbone was ap-
pointed director general OF posts his sal
ary was fixed at 5000. At his request the
postmaster general allowed him a per
diem OF s. IN addition. He claimed this
was not suficient and June 10. the Post
master General increased the salary to s6,-
800 with notification that with the In
crease the per diem would cease. July 3
Rathbone complained that the Increase
amounted to only Ss75, and asked for an
cfficial residence. This also was allowed