The Bourbon news. [volume] (Paris, Ky.) 1895-19??, 1900-07-27
THE NELLY SHORTAGE
Bristow's Report Says it Will Ag-
gregate at Least $I3I,7I3.
Light Thrown Upon Many Other of
NeeIy's transactions Heretofore
Not Made PubIic-Others Inn
pIfcated in the Matter.

port of Fourth Assistant Postmaster
General Bristow, who investigated the
Cuban postal frauds. Mr.. Bristow
finds that Neely's embezzlements ag-
gregated at least $131,713, and says
he was justified in recommending the
removal of Director General Rath-
bone Whether or not the latter was
guilty with Nicely in the embezzle
ments, he says there can be no doubt
that in the matter of unauthorized
per diem allowances, personal ex-
penses and warrants cashed and UNI
accounted for, he unlawfully appro-
priated to his own use money of the
Cuban revenues. For this, Mr.. Bris-
tow says, he believes Mr.. Rathbone
should be required to answer.
Mr.. Bristow explains that the bu-
reau of finance inaugurated by Di-
rector General Rathbone, of which
Nicely was appointed chief, was start
ed July z, 1899. This bureau was
charged with the custody of all
stamps and postal supplies. The di-
vision of postal accounts, changed
July 1, 1899, to a division of the audi
tors office, was in charge of DR.. w.
II. Reeves, who was appointed by the
secretary of war. The report says
that no accounts of the unbonded
postmaster were required, remittances
being entered as cash saless and the
only information. the auditors Office
had of these transactions came from
Nicely himself. There was no check
whatever on his transactions. From
the accounts examined the report says
the minimum of Neely's embezzle-
ments may be summarized as follows:
Shortage as shown by his own rec
ords, $3O,6OO; excess of credit by de-
struction of surcharged stamps def
S131,713 This will be increased by
the discovery of additional sales of
surcharged stamps, but will not ex-
coed $15O,OOO in the aggregate.
The report says that Rathbone APP
pointed Nicely, who had custody of
the stamps; Reeves, the only man
who could have a check on Neely's
transactions, and DIR. Warfield, chief
of the bureau of registration, a COM
mission to destroy the surcharged
stamps, of which Nelly had received
1922, 900, and that Nicely and Reeves
entered into a conspiracy to report a
larger quantity of stamps destroyed
than We're actually destroyed. But,
the report says, Neely's fraudu-
lent transactions were not conEhed
to these embezzlements, and, while
the amounts were small compared
with the latter, ''they show the same
official depravity and utter disregard
of the interests of the public SER
vice"
The connection between Nicely and
the Nicely Printing Co., of Muncie,
Ind, of which he was proprietor be-
fore he went to Cuba, is then eX-
planned. The alleged sale of the plant
of this company to Cowan, Neely's
business associate, the report says,
was not a bona fide transaction, as it
is not believed Cowan ever paid Nicely
any money fer his pretended interest
Nicely ordered from this company sup
plies for the department of posts in
Cuba.
The books of the printing company
show it received for printing S7,937,
while the bills paid and the money
order records at Muncie snow So, 131
more than the amount indicated by
the books was paid. Some of the bills
were paid twice. Rathbone, when
asked why he approved these ac-
counts, said he did not know until
after Neely's arrest that any print
ing was done at Muncie. If this state
ment is true, says the report, he con-
victs himself of the most utter and
indefensible negligence of official
duties.
The department of posts purchased
from the Keylcss Lock Co., of Indian
apolis, $14,S79 worth of furniture.
This company paid Nicely $3,292 in two
checks-one for $2,972 and the other
for $500. For what purpose this
money was paid him does not appear.
The only reasonable conclusion is
that it was paid as a commission"
subsidy or bride for the privilege
of supplying the furniture.
When Nicely was assigned to duty
in Havana January Z, 1899, his salary
was $1,000. The report says he was
at this time financially embarrassed.
February 6, 1899, he sent deposit
of 1929 to the Muncie bank and in
February and March his additional de-
posits aggregated $3.50. Thus Nee
ly, with salary of $3.50 month, was
able within three months to deposit
$1,859, is conclusive proof that his en-
bezzlement began in February, 1899.
In May he deposited 1897, June SITS,
July 1868, August $13,125, October
$2O,25O, and a number of deposits of
lesser amounts were made after
ward
Rain in Bombay.