The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-07-26
M'K|NLEYS PETS
COME To GRIEF
NeeIey's Salary Was $1,000
Per Year.
HE SWIPED $131, 7l3 MORE
Rathbone Also Loots the Cuban Postal
Revenues For Large Amounts.
ASST. POSTMASTER GENE'AL's REPORT
Shows That the officials in Cuba Have Been
Guilty Of Every Sort Of Thieyery and
EmbezzIement. The Carpet-b'g
Period Repeated.
Period Repeated.
(By the Associated Press }

Washington, July 25.-The Postmaster
General has made public the report of
Fourth Assistant Postmaster General
Bristow, who investigated the Cuban
Neeley's embezzlements aggregated at
least $191,71 and says he was justified
in recommending the removal of Director
General Rathbone. Whether or not the
latter was guilty with Neely in the en-
bezzlements, he says, there can be no
doubt that in the matter of unauthorized
per diem allowances, personal eXpendi
lures and warrants cashed and unaccount-
ed for, he unlawfully appropriated to his
own use money from the Cuban revenues
and for this Mr.. Bristow says he believes
Mr.. Rathbone should be required to an
swer.
The report says there was no check
whatever on Neely's transactions. From
the accounts examined the report says
the minimum of Neely's embezzlements
may be summarized as follows:
Shortage as shown by his own records,
$30,600; excess of credit by destruction
of surcharged stamps definitely ascertain
ed, $101 lib; total S131,713.
This will be increased by the discovery
of additional sales of surcharged stamps
but will not exceed $15O,OOO in the ag-
gregate.
The report says that Rathbone appoint
ed Neely who had custody of the stamps
w. H. Reeves, the only man who could
have a check on Neelys transactions, and
ID. Warfeld, chief of the Bureau of Reg
istration, commission to destroy the
sur-charged stamps of which Neeely had
received $522,OO0. and that Neeely and
Reeves entered into conspiracy to re-
port larger quantity of stamps destroy
ed than were actually destroyed. But,
the reports says, Neely's fraudulent
transactions were not confined to these
embezzlements and while the amounts
were small compared with the latter,
they show the same official depravity
and utter disregard of the interests OF
the public service"
The connection between Neeely and tn
Nicely Printing Company, of Muncie,
Ind, of which he was proprietor before
he went 70 Cuba, is then explained. The
alleged sale of the plant of this COM
pany to Cowan, Neelys business asso-
fide transaction as it believed Cowan
never paid any money for his pretended
interest. Neeely ordered from his COM
pany supplies for the Department of
Posts in Cuba.
The books of the printing company
show it received for printing $7,937, while
the bills paid and the money order rec
ords at Muncie show 81, ,131 more than the
amount indicated by the books was paid
Some of the bills are paid twice. Rath-
bone, when asked why he approved these
accounts, said he did not know until
after Neely's arrest that any printing
was done at Muncie. II this statement
is true, says the report, he convicts him
self of the most utter and indefensible
negligence of official duties. The De-
partment of Posts purchased from the
Keyless Lock Company, of Indianapolis,
$14,S79 worth of furniture. This company
paid Neely SO, 292 in two checks, one for
$2,972, and the other for 1920. For what
purpose this money was paid him does
not appear. The only reasonable con-
clusion is that it was paid as com
mission" Subsidy or bribe for the
privilege of supplying postoffice furni-
ture.
In July, 1899, the money available for
salaries was delayed and at Neely's sug
gestion Rathbone authorized warrant
on the uneXpended balance for the fiscal
year ending June 3Oth for S7,251 This
sum was to be reimbursed after the July
fund became available, but when Neely
obtained the warrant on the July fund in