New-York tribune., 1900-05-13
CUBAN POSTAL FRAUDS.
NEW DEVELOPMENTS IN THE NEELY
SCANDAL.
THE ADMINISTRATION DETERMINED TO
PROBE THE AFFAIR TO THE BOTTOM.
rBy TELEGRAPH To THE rRrBuSEI

[BY TELEGRAPH TO THE TRIBuNE.l
Washington. May 12.-There were some new
and interesting developments in the Cuban
postal scandal to-day Assistant Secretary
Meiklejohn received an express package this
morning from General Wood containing an ap-
plication for the extradtion Of Neely, who was
arrested several days ago for alleged embezzle-
n7ent Of postal funds in Cuba, and Immediately
sent ii to the Attorney General for his action.
1t is expected that writ of extradition Will be
promptly granted by Governor Roosevelt
At noon Mr.. Meiklejohn resumed the private
conference he began yesterday with Deputy
Auditor Lawshe and the postal inspectors who
have been detailed to proceed to Cuba to in
vestigate the alleged frauds. These conferences
are for the purpose Of putting the investigators
in possession of all the facts and data obtained
by Colonel Burton, of the Army. whose recent
Investigations resulted in the arrest of Neely.
The Postmaster General also devoted much
time to the same subject. and had a long private
conference with Colonel Burton. who called at
the Postofice Department for that purpose
Postmaster-General Smith also gave the inves-
tigating commission its final instructions to-
day, and Deputy Auditor Lawshe and his col
leagues WIFI start on Monday for Cuba. Mr.
Iawshe was to-day appointed by Assistant Sec
retary Meiklejohn Assistant Auditor OF Cuba, in
place of Deputy Auditor Reeves. who has been
suspended pending the result of the investiga-
ton.
SCANDAL TO BE THOROUGHLY PROBED
To-day's developments and activities all indi-
cate-and, indeed, attempt is now made to
conceal the fact-that members of the Admin
istratior feel seriously concerned on account Of
the revelations of Colonel Burton. and that
searching investigation is to be made to ascer-
tain whether the Irregularities have extended
TO other officials and branches of the service in
Cuba than those already involved. 1t is feared
that such may be the fact, and that more
frauds. irregularities and NEUTRALITY-SUSPICIOUS.
may be discovered, not only in Cuba, but in
some of the new insular possessions of the
United States. So anxious is the Administra-
tion to discover and correct any abuses which
NAV exist that heroic measures Will be taken
If necessary to that end. 1t appears that the
lax administration of postal affairs in CUBA
attracted official attention some time ago. ana
that an investigation has been quietly in prog
ress for several weeks, the first result of which
was the arrest of Nicely. He is a subordinate
of CAPTAIN Iadd of the Army, the treasurer Of
Cuba and has been on duty, first as auditor
and next as treasurer. since January, 1899
There is disposition to hold the Director OF
Posts. Mr. Rathbone responsible in part for
the IRREGULARITIES III VI tiic 'SS '@N0'
and it is believed that he will be suspended
pending the result of the investigation. if, in
deed, such an order has not been already is
sued He is not suspected of official corruption.
but there is a strong belief in some quarters
that he has shown lack Of vigilance in the dis
charge Of his important duties.
Colonel Edwards. Of the Army. who is at
the head of the Division of Customs and Insuar
Affairs in +he War Department. has obtained
much information OH the general subject of
irsular administration through special reports
called for by him from the War Departments
agents in Cuba Indeed, there is an ntimation
to the effect that it was through report called
for by Colonel Edwards on the assumption by
him of the direction of insuar affairs short
time ago that the first evidence Of the postal
frauds was Unearthed.
OTHERS INVOLVED WITH NEELY.
The officials here who have been cognlzanl
Of the steps that followed this first report eA-
press surprise that the whole matter mas peeh
SO successfully concealed from the pubic up
to this time. They say that. while 1t was the
nurnose of the prosecuting officials to avoid
nublcity until they had taken precautions TO
prevent the escape of any guilty person. 1t is
eurprising that they should succeed, in view
of the fact that this whole matter has been
subject for discussion among the American
colony in Cuba for some time past They also
saw that the opinion prevailed in Havana that
Neely was not alone, and that other officials
were said TO have been associated with him.
The Cuban scandal continues to excite much
lively comment and discussion among members
of Congress as well in Administration cir
cies and further developments are awaited with
keen interest. The Democrats. Of course. hope
TO derive some partisan advantage from the
,,ax, OH
a checkmate in the evident determination Of the
President and his Cabinet not only to probe
the Irregular to the bottom, but to pursue
and punish all who have been guilty Of them.
A fear is expressed by some friends Of the
Administration that the abuses and irregulari-
ties already discovered are only symptomatic
and that a searching investigation will uncover
irregular practices and transactions in other
branches of the military administration of af
fairs and in other places than in Cuba.
FAULT IN METHODS OF ACCOUNTING.
1t now seems unfortunate that the seat Of
accountability for receipts and disbursements
on account of the administration of civil affairs
in Cuba, Porto Rico and the Philippines was
transferred from Washington, where it would
have been in the hands OF officials Of long ex-
perience and thorough training in the perform
aEce OF their duties to Havana. San Juan and
Manila where new bureaus of accounting had
TO be created, and manned with such material as
could be had The President in December 1895
issued order requiring all accounts of re-
ceipts and disbursements in Cuba, Porto Rico
and the Philippines to be transmitted to the
auditor of the War Department for settlement,
and Congress in February 1899 appropriated
money for the payment of extra clerks TO per-
form the additional work in the auditors Of
fee. Only batch OF accounts was ever re-
ceived by the auditor and that was minus