The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-05-09
President Mckinley Determined to
Probe the Charges Against Nicely
and Punish Him n Guilty.
DEVELOPMENTS AT HAVANA
SHORTAGE OF $4,000 IN THE DE-
PARTMENT OF POSTS.
100000 Worth Of Stamps Believed to
Have Been Used when They
Should Have Been Destroyed.
vpeclal to the indianapolis Journal.

DpecIal to the indianapolis Journal.
WASHINGTON, May S.-The friends of
=. f. W. Neely, of Muncie, Ind, charged
with having defrauded either the United
States government or Cuba out of a large
sum Of money, are reluctant to believe he
Is guilty. The officials of the Postoffice De-
partment have no details of his alleged
,rime and If the War Department officials
have anything of definite sort they are
withholding 1t from publication. The COM
posure OF the accused man and his stout
denia1s of guilt make his friends believe
he may be able to show clean record and
prove his innocence.
Neely has been known as a man Of means
and a money maker. 1t is, therefore, not
necessarily evidence that he has robbed
the government for large sum of money
TO be found IN his possession. He Is a
shrewd, thrifty. energetic man of business,
quick to see an opportunity for profit, but,
according to the testimony of those who
know him best, has always been honorable
In his dealings. and one not likely to put
himself In Jeopardy for any sum of money.
II might. therefore, be well to await de-
velopments before pre;udicing his case. and
jumping to the conclusion that he has been
stealing from either Cuba or the United
States
There has been hot friction between the
War Department and the Postoffice De-
partment over the conduct of the postal
service In Cuba. Beyond appointing Major
z. @. Rathbone director of posts of Cuba,
Postmaster General Smith has had very
little to do with the postal affairs of the
island. Appointments in the Cuban service
have been made entirely by Mr.. Rathbone
although. in many instances. these appoint
ments have been recommended by the
Postofice Department. Still, he has been
free to exercise his judgment and discre-
ton in the premises. Major Rathbone has,
however, kept the department advised as
to the main feature of his administration
His business. though. has been under the
official direction of the War Department
ard he has recognized General Wood and
his predecessor. General Brooke, as his i'm
mediate superiors, within certain limita-
tions. 1t Is with regard to these limitations
that friction arose between Mr.. Rathbone
and the War Department Mr.. Rathbone
insisted on his right to direct certain
features Of the postal service, for which
he was personally responsible The war Of
ncials and army officers stationed in Ha-
sisted on dominating the entire postal serv-
fee and Of subordinating the authority Of
the director of posts to that of the mili-
tary.
BANKERS FIGHTING RATHBONE.
The banking interests OF Cuba have been
In active sympathy with the military au-
thorities in their efforts to suppress Mr.
Rathbone- Bankers have complained that
the postal service under Mr.. Rathbone has
interfered with their business by providing
q system OF money exchange between the
various towns on the island cheaper than
the rates previously prevailing. Last year
the Cuban postal service, as managed by
Mr.. Rathbone. handled at nominal cost
about $lo.0O0,O00 for the Cubans, this
amount being largely commercial money
usually transmitted through the banks and
banking channels. For many months the
Postoffice Department in Washington has
been overwhelmed with written and per-
sonal appeals from Cuban bankers in re-
gard 10 this matter and with protests
against that branch OF the service having
TO do with the handling OF money. This
campaign on the part Of the Cuban bankers
has been giving the Postoffice Department
much concern. and the merits OF the con-
troversy between them and the director of
posts has been discussed at more than one
Cabinet meeting. as we'll as between off,
cials OF the War and Postofice Depart
ments.
Failing. however. to bring the postmaster
general over to their way OF thinking, and
falling. also. to make the desired impress
sion on the administration. those who have
kept protesting against the Cuban post
ONCE department entering the banking
neld In a matter OF exchange of money
between communities adopted a new line
Of attack For weeks vague reports have
been In circulation that big scandal was
about 20 be sprung which would involve
the United States postal officials in Cuba.
What these charges were to be no one ap-
peared TO know exactly. but IL was long
ago ascertained that Rathbone was TO be
the target. and that the purpose of the
fight was to secure his dismissal or recall.
The names Of one or more prominent OFF,
Gals In Washington were also banded
about BY scandal mongers and whispered
- being connectd nefariously with postal