The evening times., 1900-05-18
TIE CUBAN POSTAL FRAUDS.
Administration Said to BE Anxious
IL Punish the Perpetrators.

te s'unish the Perpetrators.
0i,ioials of the Administration are amaz-
ed at the extent OF the Cuban postal frauds
and as the evidence accumulates it is said
to strengthen the position OF the President
and the members of the Cabinet that ey-
erything possible shall be done to bring to
trial every man implicated either directly
or indirectly in the frauds. II is certain
that the suspension OF Director OF Posts
Rathbone viii be permanent Fourth AS
sistant Postmaster General Bristow goes TO
Cuba with full authority as Mr. Rath-
bones superior to relieve him from duty.
He carries with him full power TO dismiss
Mr. Rathbone from the postal service and
officials here say they will not be surpris-
ed if this is done. II is rot believed that
Director RathbOne is az ali connected with
any OF the irregularities. bat he is being
severely criticised for his failure to allow
full investigation of all his vouchers by the
military authorities Of Cuba When the
postal service was established Director
RathbOne was placed in fsll control and
was not subordinate TO the Military Gov
ernor except when he had to draw from
the Governor sufficient funds TO make up
the deficit in the postal accounts caused by
a surplus of expenditures over the regular
receipts
A plan Tor this was agreed upon. the
treasurer OF the island issuing warrants
TO Director RathboDe drawn upon the
funds in the general treasury These
funds were largely made up from the Gus
toms receipts Of the island, and during
General Brooke's administration in Cuba
the warrants were issued without much
complaint as to the consealment Of the
vouchers showing expenditures. When
General Wood succeeded General Brooke
he at once took the position that as the
customs revenues were being used in part
TO support The postal service the military
authorities had right 10 examine all ac-
counts OF the postal service and TO re-
Quire Director Rathbone 10 submit his
vouchers in support Of his financial state
ments. Thest General Wood had din
Guilty in secur ing. He complained 10 the
War Department regarding the matter.
Director Rathbone did not according TO
the officials. absolutely refuse to allow
anyone 10 see The vouchers, but they were
kept in the postoffice building IN such
way as not 10 be accessible when the
military officials desired TO inspect them.
A high Official of the Government said
today that whenever General Wood made
any effort in the direction OF exam.ng these
vouchers he was met With a quiet resist
ance which emphasized the contention Of
Director Rathboue that he was not under
the auSa ority of the War Department.
This erection came TO Secretary Roots at
teLlticr when he wGs in Havana. and after
his return from Cuba General Wood fled
with the War Department \ written pro
test against the continued opposition 70 an
exaI nation Of these vonchers- The mat
ter gent 50 fs= that Director Rathbone
Wss infer ned that it may beoome neces-
sary to have all the vouchers removed from
Tine postOfiee department in Havana TO
the military headquarters General
Woods protest was sent 20 him for re-
mark AID tSe matter was pending when
the discovery Of NeeIy's alleged defalca-
ton came 70 u yht.
Il is sid at The War Deuartment that 1t
was evident from the first discovery that
Neely had aecompIiees. There had been
inspections Of the accounts OF both Neely
and the auditor. The latter was supposed
TO act as a check on Neely. this being the
system in the postal service The fact that
the discovery was not made sooner is at
tributed 10 an alleged understanding be
tween Nicely and Reeves. e s,sGitOrA>no-
nel Burton AsI beer over -l-. El-4.It' - =
ports, but had nothing 10 confirm any sus-
picioEs until he discovered Neely's private
book. This showed such statements as
convinced him that something was wrong
and led 10 a closer inspection that brought
forth evidence Of fraud.