The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1900-07-26
SUN IHKEN WAS LARGE
MIR. BRIsTow,s REPORT ON CUBA
POSTAL FRAUDS MADE
PUBLIC
RATHBoNE FULLY IMPLICATED
Amount of Shortage Is Placed at
$131, 713-PecuIntions Began Ear
Iy Under the Medley Regime
Conspiracy Is shown.

WASHINGTON. July 25.-The post
master general has made public the re-
port of Fourth Assistant Postmaster
General Bristow, who investigated the
Cuban postal frauds.
Mr.. Bristow finds that Neeley's embez-
elements aggregated at least $131, 713, and
says he was justified In recommending
the removal Of Director General Rath.
bone. Whether or not the latter was
guilty with Neeley in the embezzlements,
he says there can be no doubt that in
the matter of unauthorized per diem al
! lowance, personal expenses, and warrants
| cashed and unaccounted for, he unlaw-
fully appropriated to his own use money
Of the Cuban revenues. For this. Mr..
Bristow says, he believes Mr.. Rathbone
should be required to answer.
| Mr.. Bristcw explains that the bureau
of finance inaugurated by Director Gen
eral Rathbone, Of which Neeley was ap-
! pointed chief, was started July Z, 1899
This bureau was charged with the Gus
tody of all stamps and postal supplies
The report says that no accounts of the
unbonded postmaster were required, re-
mittances being entered as cash sales
and the only information the auditors
office had of these transactions came from
Neeley himself
NO CHECK ON NEELEY.
There was no check whatever on his
transactions. From the accounts OK
! amined the report says the minimum of
Neeley's embellishments may be sum-
married as follows: Shortage as shown
by his own records, S30,000; excess. of
credit by destruction of surcharged
stamps, but will not exceed 100000 in the
aggregate.
The report says that RathbCne appoint
! ed Neeley, who had custody Of the
! stamps; Reeves, the only man who could
have a check on Neeley's transactions.
and D. Warfield, chief of the bureau Of
registration, as a commission to destroy
the surcharged stamps, of which Neeley
had received $52200 and that Medley and
Reeves entered into a conspiracy to re-
port larger quantity Of stamps
| destroyed
The connection between Medley and the
Medley Printing company, of Munice,
! Ind, of which he was proprietor, before
he went to Cuba, is then explained. The
| alleged sale Of the plant of this COM
! pany to Cowan, Neeley's business asso-
ciate, the report says was not bona t1de
| transaction. Neeley ordered from this
| company
posts in Cuba. The books of the printing
company show 1t received for printing
| S7937. while the bills paid ard the money
| order records at Munlce show Psi, more
than the amount indicated by the books,
| was paid Some of the bills were paid
twice.
RATHBONE CONNECTS HIMSELF.
Rathbone, when asked why he approved
these accounts, said he did not know until
after Neeley's arrest that any printing
was done at Muncie. If this statement Is
true. saws the report, he convicts him
self Of the most utter and indefenslble
! negligence Of official duties.
The department of posts purchased from
the Keyless Lock company OF Indlanap-
| oils, SHASTA worth Of furniture. This COM
pany paid Neeley 1922. in two checks
! one Of S2972 and the other for 1920. For
! what purpose this money was paid him
| does not appear. The only reasonable
conclusion is that it was paid as com
mission" Subsidy or bride for the priv
flege of supplying the furniture.
In July, 1889. the. money available Tor
salaries was delayed, and at Neeley's sug-
gestion Rathbone authorized a warrant on
the unexpended balance for the fiscal year
ending June 80 for $7,251. This sum was
to be reimbursed after the July fund be-
came available, but when Neeley obtain
| ed the warrant, L found instead OF oe-
posting it he cashed it and made no &C
counting Of the money
NEELEY's BANK ACCOUNT.
! When Medley was assigned to duty in
Havana, Jan Z, 1899, his salary was $500.
Feb. 6, 1899, he sent a deposit Of 1929 to
the Muncie bank, and in February and
March his additional deposits aggregat-
ed 81 $50 Thus Neeley with a salary Of
$50 month, was able within three
months to deposit $3.50
The report says that c. NJ Rich, who
was brought to Havana as Neeley's as
sistant, told Rathbone in April that
NeeIey was CROOKED" Rathbone denied
| any such conversation with Rich. The re-
port, continuing, says: "Rich claims to
be innocent, but he at least had knowl-
edge of Neeley's embezZlement long be-
fore he claims to have told Rathbone.
Reeves confessed that Neeley paid him
S., 600 for concealing the fraud in the de-
struction of the stamps. Both Rich and
Reeves protest against any criminal de-
signs"
RATHBoNEs SALARY RAISED
Dec. 81, 1898, when Rathbone was ap-
! pointed director general of posts, his sal
| airy was fixed at $4,000 with per diem
of So in addition. He claimed this was
not sufficient, and June 10 the postmaster
increased the salary to $500 when thu
per diem would cease But although the
per diem was cut off, Rathbone continued
to draw it. In closing the description as
to the per diem, the report says:
1T appears, therefore, that Director