New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-07-26

FRAUDULENT AND DUPLICATE WAR
RANTS.
Before starting on his tour Of inspection
around the island Of Cuba Director-General
Rathbone drew two warrants one in favor OF
w. E. Wilmot cashier for $500 and one in
favor of himself for like amount The ex
penses of the trip. aggregating $3.50 o. were
paid from the warrant drawn in favor of w.
r. Wilmot cashier. The remaining SID 93 was
returned to the auditor and receipt taken there
Tor. The other warrant was lost and payment
On was an eeSeF aran tos
drawn in favor of E. 6. Rathbone for $500,
in lieu of warrant No. 1901 lost and July
D II was Endorsed by Rathbone and cashed. No
accounting has ever been made by Rathbone
for this $500.
When he made his trip 10 the United States
IN April and May, 1893, he also drew two war
rants in the sum of $500 each. both payable to
himself One was cashed at Havana on April
-. before he sailed. From this warrant the eX
penSes OF the trip, aggregating S42o 40 were
paid. and the remainder. STA 81, appears 10 have
been returned 10 the auditor. The second war
rant was cashed in Washington by Rathbone
himself, and no accounting has ever been made
of the $500 SO received No part of II was nee
essary TO defray the expenses of the trip. the
of the warrant cashed in Havana.
From the records 1t appears that Director
himself in the sum OF $500 each received the
money thereon, and made no accounting what
There stands against him. therefore the charge
Of unlawfully appropriatinR 900 of the Cuban
postal funds to his own use
EXPENDITURES WITHOUT VOUCHERS.
There were many large expenditures by Rath-
bone and Nicely for which no vouchers were
tneo, When vouchers could have been easily
obtained. These expenditures were usually made
by Nicely and approved by Rathbone. Assistant
Auditor Reeves, when asked why he had passed
such expense accounts, stated that he did not
feel that he had the right to refuse to allow that
which the Director General of Posts had
dered paid-a statement which, If true. indt
h9f he ha M nf tba d1ffia
and responsibilities of an accounting officer
Inc report says: Il do not credit Reeves's
statement, however; the evidence is too strong
of colluson existing between Nicely. Rathbone
and Reeves for the purpose of passing these
unwarranted expense accounts. For
months such miscellaneous expenditures aggre-
gated as much as $3.50. Such items re
pairs, 5000; freight. $500; miscellaneous ex-
penses SIS" appear without any receipts or
ACCOMMODATING vouchers whatever Director
General Rathbone, being asked as to these
miscellaneous expenditures. said that he sup
posed Nicely was honest and that the accounts
were right. and he therefore ordered them paid.
General Rathbone has been engaged in the
Government service many years, and knows
tnat such method of presenting bills and such
expenditures wholly unwarranted and bear
the strongest evidences of corruption. There
fore, for him to approve such accounting renders
him equally guilty with Nicely. The total
amount of these miscellaneous expenditures was
SG290 SO a part Of these were proba bly, Iegiti-
mate, but a large part were doubtless fraudu-
lent expenditures, for which Rathbone, Nicely
and Reeves are equally responsible.
ENLIGHTENMENT OF 2 P THOMPSON.
In September. 1899 f. P. Thompson, post
master at Havana, caused to he issued in his
own behalf four money orders for 800 EACH
and instead of deposting the money therefor
he placed his due bill in the drawer for $500.
some time afterward an inspection of the Of
nee was made Thompson. being advised in ad-
vance. placed $500 in the drawer from remit
tances he had received that morning, postpon-
ing the entry of the rerlittances until after the
inspection was finished, Then he withdrew the
S4Oo. replaced his due dill, and entered up the
remittances. Thompson knew that his act was
crime, and when he covered up his shortage
and deceived the inspecting officers he plainly
showed that he was aware he had seriously
violated the law.
INDICATIONS OF IRREGULARITY
In discussing the inspection made by Rath-
port says that Nicely mad been informed that
an inspection was TO be made, and that the in
speetio19 vas delayed at Neely's request until
he might get ready for the investigation
Nicely occupied the most confidential relations
With RathhQne, and regarded as the most
influential with him of all The postal employees
RATHBoNE HAD BEEN WARNED.
In May 1899. United States Inspectors suIIt-
van and Letherman inspected the accounts of
the Bureau of Finance, and in their report in
created that there We're irregularities in the
stamp account with postmasters. They stated
that there was no check against the accounts OF
the chief OF the Bureau of Finance, and recon-
mended a form by which a check could be had
In October 1899. George w Marshall one OF
the bookkeepers in the Bureau of Finance and
acting chief in Neely's absence advised Di-
rector-General Rathbone that he was not de-
posting all OF the money received that Nicely
had instructed him to hold out a certain amount
giving some excuse therefor,
In January, 1900 Fl. H. Williams a special
agent told Diroctor-General Rathbone that
there vas something wrong with the accounts
or the Bureau of Finance regard to the re-
ceipts of the Matanzas postoffice He stated
that the receipts were several thousand dollars
more than the records Of the Bureau Of Finance
showed.
he remembers nothing of these conversations
with Williams or Marshall. and regardless of
these warnings. Nelly seems to have retained
his full confidence
The report finds that Rathbone's expenditures
IN the payment of debts and living expenses
were much in excess OF his salary: that In Sep
TENDER and October 1899 within thirty DAYS
after the destruction of the surcharged stamps, |
Rathbone paid over $1,000 indebtedness In
discussing this subject the report SAYS: 'Tt is
evident that the money with which this indebt-
edness was paid was secured from some other !
source than his salary, and up to this time
have been unable to learn Of any source of in |
come that Director General Rathbone had other |
his compensation as Director General of Posts
CONCLUSIONS.
The report closes as follows:
In this report have not endeavored to go
into minute details, presenting briefly as
practicable the most salient features. Addi- /
tional Information will probably be secured |
but not Of such nature as TO materially change |
the conclusions.
Director-Genera Rathbone maintains that he |
is innocent of wrOngdoing that these extensive |
embeZZ elements are the result of dishonesty on |
the part Of subordinate officials who had been |
we'll recommended to him as honest and up |
right men. and that he had found no cause to |
doubt their integrity efficiency of administra- |
tion that the revelations brought out by the |
investigation were a great surprise to him and |
wholly unexpected; that he had believed up to |
accounts of