The Providence news. (Providence [R.I.]) 1891-1906, 1900-05-09
Praised Him for tho Manner In Which He
Handled Accounts and Funds.
ABOUT $224,OoO DUE GOVERNMENT.
Arrest Of Nsse Was Made on TsIsgraphlc Order
From Col. Burton Of Inspector Generals De-
parimsnt- Will 90 Tried 10 Havana.

Washington. May 9.-The postoffice
department has report from Agents
Seybolt and Neal as to the amount of
postal revenues in the hands OF Charles
f. w. Neeley. the chief OF the Bureau
OF Finance for the Postal Department
In Cuba on April 20.
AT the time, according to these reports
he apparently accounted for all sums
due the government, and, 1t is said by
postoffice department officials, that II
Neeley embezzled postal funds he
must have juggled the figures and made
raise entries, or else took the money
Immediately after the balance was
struck. According to the figures at
command here, however, there is an
apparent discrepancy between the
amount of postal order funds as given
by Mr.. Neeley and the amount due the
government IL was stated that he had
on April 20, $119.930, while the books
here indicate that he should have had
approximately, 100000.
On April 10, D4rector OF Posts Rath-
bone asked that statement be pre-
pared or the money order and postal
account OF the Bureau of Finance, as
made on the 10th of April. On April
23, Gen. Rathbone directed that a fur
sulting report, as stated. indicates that
Neeleys accounts were correct and
were so certified by the agents who,
in concluding their statement. say:
The manner in which these accounts.
stamps, supplies and funds are han
died reflect credit upon the chief OF
the Bureau of Finance, Mr.. Charles
+. w. Neeley. and his assistants"
Ii is apparent that an examination of
his accounts were made In detail at
that time. There has at all times been
a balance due the postofiice department.
on account of money order funds. on
April l a shipment of $4,000 was made
10 this country on that account and
there is now due $224000.
1t would appear that these are the
only funds permitted TO accumulate in
the Cuban Office, as IL is said that all
other. postal revenues are transmitted
TO the military authorities as soon as
received in the Bureau of Finance.
Secretary Root says that he has no
information in regard to the alleged
postal frauds in Havana beyond what
has been published in the newspapers.
The matter was investigated by Col.
Burton. of the Inspector Generals De-
partment, by direction of Gen. Wood
and the order for the arrest of Mr.. Nee
ley. Chief Financial Agent of the Unit
ed States Postal Department in Cuba
was based on a brief telegraphic re-
port from Col. Burton. He gave no de-
tails of the alleged fraudulent trans
actions and said tha< he would come to
Washington and give a complete result
of his investigation to the authorities.
He expected to arrive at Fortress Mon
roe In day or two. Secretary Root said
that so far as he knew. no person con-
nected with the military establishment
was involved in the alleged frauds. The
question OF the prosecution OF the Of
fender has been referred to the depart
ment OF justice.
The only matter OF interest which
came before yesterdays cabinet meet
ing was the shortage in the Neeley ac-
counts. The question arose as to
whether the United States or Cuba was
responsible for the amount OF the de-
falcation.
IT seemed TO be the opinion of all the
members present that as Neeley was
appointed bythe United States and that
IN administering the affairs OF the ISL
and. this government is acting In a
sense az a trustee. IL therefore is re-
sponsible for the shortage, and can pro-
ceed against Neeley's bondsmen for the
amount involved. 1t was practically
settled. too that Neeley would be taken
back to Havana for trial before a civil
tribunal.