The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1900-07-26
The OFFICIAL
DEPRAYITY OF
NEELY EXPOSED.
BY the Report Of Fourth Assistant
Postmaster General Bristow.
Reeves In the Conspiracy.
DEFICIT AMOUN1SIOsl3l,7l3.
Entertainments Covered Large
Field -, Sale of Muncie Printing
Establishment Not Bona Eide.

W WASllNIION,7 Julys so.-Ine posi-
master general has made public the re-
port Of Fourth Assistant Postmaster
General Bristow, who Investigated the
Cuban postal frauds Mr.. Bristow finds
that Neely's entertainments aggregated
a, least sl3l,71s and says he was just!-
fed In Recommending the removal OF
Director General Rathbone. Whetha-
or not the latter was guilty with Neely
In the entertainments. he says there car
be no doubt. that in the matter OF unau-
thorlzed per; diem allowances. personal
expenses and warrants, cashed and un-
accounted for, he unlawfully appropri-
a,ed TO his own use money OF the Cuban
revenues. For this MIR. Bristow says
he believes Mr.. Ruthboue should be re-
Quired to answer.
The Bureau Of Finance. &
Mr.. Bristow explains that the bureau
OF finance inaugurated by Director Gen.
eral Rathbone of which Neely was dp-
pointed chief, was started July :. 1883.
This bureau was Charged with the Gus
tody Of all stamps. and postal supplies.
The division OF accounts. changed July
l. 1899. to q division Of the auditors
Office. was in charge of DR.. w. II.
Reeves, who was appointed by the Sec
re;ary OF war. The report says that no
accounts Of the unbonded postmaster
were required. remittances being enter
ed as cash sales. and the only informa-
,,on the auditors Office had Of those
transactions came from Neely: himself.
There was no check whatever, on his
transactions. From the ACCOUNTS sx-.
sraiusd the report says the minimum OF
Neely's entertainments may. be sum-
married as follows:
Total Shortage, S131,713.
Shortage. as shown by his own re-
cords. ssesco; excess Of credit by de-
struction Of surcharged stamps definite
ly ascertained, s1o1, us; total. sl3l.n3
This will be increased by the discov-
cry of additional sales OF surcharscd
stamps: r:::but will not exceed s15o.o0o in
the aggregate.
The report says that Rathbore ap-
pointed Neely, who had custody of the
stamps, Reeves. the only man who
could have check on Neely's transac-
tions and d. Warfield, chief OF the bu-
renu OF registration, q commission 10
destroy the surcharged stamps OF which
Nicely had, received s522.oos and that
Neely and Reeves entered into con-
spiracy to report 4 larger quantity Of
stamps, destroyed than were actually
destroyed.
Not Confined to These Embezlements.
But. the report says, Neely's fraudu-
lent -ansactions were not confined to
these embezzlements. and while che
amounts were small compared with the
latter they show the same official de-
prav!ty and utter disregard of the in
tcrests OF the public service"
The connection between Neely and
:he Neely Printing Company. of Mum
c!e, Ind OF which he was proprietor be-
fore he wen. to Cuba. Is then explained.
The alleged sale CT the plant of this
company to cowan. .Neely's business as
sociate. the report says. was not 4
bona fidc transaction, as 1t is not be-
llcved Cowan ever paid Neeny any
money for his pretended interest. Nicely
ordered from this company supplies for
the department OF posts In Cuba.
Began to Steal at Once.
When Ncely was assigned to duty In
Havana. January {, 1888. his
salary was $500. The report says he
was d, this time financially embarrass-
ed. His accoun. with the Union Ma
tloral Bank OF Munc!e, was frequently
oyerdrawn. February c, 1899. he sent
deposit OF S3:s to the AIuncle bank and
In February and March his additional
deposits aggregated $3.50. Thus Neely.
with salary OF $50 month. was able
within three months to deposit Sl,s59.
conclusive proof that his embezzlement
began In February. 1899. In May he
deposited 1897, June s775: July 1868; Au-
gust Sl3,l25; October s2o.25o and num-
Der OF deposits OF lesser amounts were
made atterward."
The report deals ut considerable
length with tho speculative ventures
Into which Necly branched out in Cuba.
They Included the West India Trading
Company, In which he invested s12,500.
brick plant In Havana, in which he
Invested $4,000. and some mining
schemes in South America. The report
says that C.M. Rich. who was brought
TO Havana as Neely's assistant, told
Rathbonc In April. that Nicely was
crooked" Ra,hbone denied any such
conversation with Rich. The report
continuing says:
Rich Claims to be Innocent.
'Rlch claims TO be. Innocent. but he
at least had knowlcdgs of Nee!y's en-
bezzlemcnts long before he claims 70
have told Ra,hbonc. Reeves confessed
that Nealy paid iim $4,000 for conceal-
Ing the fraud In the destruction OF tho
stdmps. Both f.ich and Reeves protest
asalns; any criminal designs. How
fnuch credit should BE- given. to their
statements II Is difficult to determine"
D:rsnbcr 81. 1898, when Rathhone
was appointed director general OF poatg.
his salnry was fixed ut 5000. Al his
request the Postmaster general allowed
hin a per diam OF IS in addition. lie
claimed this was not sufficient and Juns
L the poatmAster gencraLincrenscd the