New-York tribune., 1900-05-23
NEELY ARRESTED AGAIN.
CIVIL ACTION BROUGHT BY THE GOV
ERNMENT
AFFIDAVIT OF COLONEL BURTON-AC-
CUSED MAN SPENDS NIGHT IN LUD-
LOW STREET JAIL.


Charles F w Neelv formerly financial agent of
the Cuban Postal Department. slept in Ludlow
Street jail last night He had been arrested in the
afternoon order issued by Judge Lacombe.
of the United States Circuit Court in civil suit
brought by the Federal Government against him
for the recovery of $40 300 o. which. 1t is alleged,
he wrongfuily converted to his own use. Neely
was at taken before Commissioner Shields,
who fixed bail $50 600 His counsel asked Judge
Lacombe to reduce the bail. but the request was
refused and Neely. being unable to furnish it, was
locked UP. To the reporters he said: IF there
happen to be any errors in my accounts they VIII
be Strengthened out and all will come right in the
end"
The prisoner exceedingly COOL but could not
conceal his surprise at his second arrest. The first
arrest was made some time ago on the criminal
charge of having embezzled $4,000 of the postal
funds. For this he gave 100000 cash bail. This
civil charge is brought In the hope Of recovering
some of the money. Edward *. Jones. who is the
special local representative of the Federal Gov
ernment in this case, told Tribune reporter that
Neely had a considerable amount of money in
vested in this country. where ii can be found and
levied upon The $4,000 involved in the civil case
includes the smaller sum mentioned in the criminal
action. Mr. Jones said the amount had been in
creased the result of subsequent investigation.
This investigation is still going and indications
that the total defacation is much larger than
$4,000, but this is all the Government is of at
the moment. Before the trial Mr.. Jones hopes to
have evidence which will warrant him In starting
proceedings for the recovery of another large sum.
The United States Marshals had no difficulty in
finding Nicely They have kept him constantly
under surveillance. and a few moments after the
warrant was signed Marshal Henkel sa him COM
ing out of the Park Row Building. He was just
about to enter voting booth almost next door
when he wassarrested. He sent several messag to
friends furnish BAIL but up to the when the
courts closed he not successful in finding them.
The affidavit which the warrant of arrest
issued makes startling charges concerning Neely's
method Of keeping his accounts 1t is by
Colonel George II. Burton, and reads follows:
am an inspector-genera p the United States
stationed in the city of Havana. Cuba on or about
April "a, 1900, was ordered by. Major-General
Governor General of the island of Cuba, to. ex-
partment of Posts of said island that o had e been
passed upon and audited by the Assistant Auditor
for said Department from the inception OF his of
In pursuance Of said order. l Immediately, on or
Assistant Auditor in the building of the Depart
fed ment Of Posts in the said city of Havana and
Acting Assistant Auditor in the absence Of the
animation Of The accounts Of said Assistant An-
ditor. Said examination disclosed irregularities
Of the Chief Of the Bureau of Finance in said
Department Charles F. W Neely, for the purpose
Reynolds aforesaid on or about the morning of
With Mat 9d See AND they a the eTe e
almost constant communication during all of the
1900 and few hours after had informed ed'Ia said
Reynolds that intended to examine the accounts
presipitately a left said city Of Havana for New
IN cu6a hs ay nd ana and na not I S
surerior officer E; G. Rathbone, Director of Posts
as niet 'ns saeS trss IN
said Neely's office in Havana. said Rathbone sent
Hotel. in New-York City advising him to return
reply.
On about May s. 1900. to the office of the
Chief of the Bureau of Finance aforesaid in COM
pany with said E. G. Rathbone. Director of Posts
in Cuba. in the office of Corydon NJ Rich his
assistant.
The duties Of the Chief of the Bureau of Finance
nues derived from the Postal Department of the
haa 9 Cuba 3 including incl ling the sale Of stamped
business M and to deposit the same to the credit of
Island of Cuba, in Havana In order to ascertain
the the amount Of said revenue. demanded of said
the office from January 1900 TO April 80 1900 Said
handed me book which he stated was Mr.. Neeiy's
record ta ss6 b sad e ledger Tas all
postal earnings, which statement said Rathbone
Sal Said ledger (Which have marked PLAINTIFFS ex-
hibit No. u contained statement of the receipts
from fees Of the OGn oneR orer ro
January l. 1900. TO April so 1900 with the exception
IS 1900 to April 80 1900, Of which there was
06d asked said Rich if he had in the office any
IN the negative but stated that he had receipts OF
since Neeys departure which on money ' he produced
and l counted it and found the same to amount to
al moneys Teeeived % by said said Nee Nsely ' had been
deposited with the Treasurer of the Island of Cuba
The ledger left by said Neely shows that the cash
IN the island Of Cuba for the months % of January
@ eoe1ed Ap 300 G he Sale OF
a ed pa fbs and from box rents the of
Salu treasurer the of SlI.53l For February
1879, he received from the sale of stamped paper
ad added T0m The box s en @ k b @ sSm m Of & s. & " M ThGh o
fees Of the money order business for the months of
cash also in the of Febfgry s FCoh the up um m
Of s4S5 a received from fees of the money order
s I4s He d dd not hSeyer deP9sit this
amount, added to the first two items makes the
total receipts for February 1900 amount the
ss9 96 + s OS Of which he deposited the sum of
In Marsh he collected from the sale Of stamped
he deposited the sum of SIS s2s a. In April 1900 he
collected the Of s2s s2s q of which he deposited
tabulated statement annexed hereto and marked
Plaintiffs Exhibit B. show the result of my
Charles F. W. Neey. as Chief of the Bureau Of
which he has deposited with the Treas;irer Of Cuba
the of :77 2sl 81 and that the balance amount
cannot @ be- found ana that tRe saG ea REMAINS
entirely unaccounted for
Plaintiffs Exhibit B, mentioned in Inspector
General Burton's statement. is as follows:
January REcEIprs. So. s2 % Jonuary DEPOSITS 5ao %
February 3 S3 2S3 90 s6 February p aas 90
APFfh APF s 81 81 Apr iprhA lssSs IS sss s s
Total 1922 e5e 90 Total ....... .s77- PSI 81
Defalcation. s45 375 25.
Frederick p Smith, who says he Is a civil enef-
neer and lives at No 116 East Eighteenth-st this
city, makes affidavit that the writing in the ac-
count books in Colonel Burtons custody is that Of