Cameron County press. [volume] (Emporium, Cameron County, Pa.) 1866-1922, 1900-08-02

Public Funds Handled by Nicely
Quickly Vanished.
An Official Report COEcernin. the Gus
ban Postal Frauds Is Published
Ii Holds T.. d. Rathbons to be
Almost Equally Guilty of
Malfeasance in OGice.

port of Fourth Assistant Postmaster
General Bristow, who investigated the
Cuban postal frauds. Mr.. Bristow
finds that Neely's embezzlements ag-
gregated at least S13l,11S and says he
was justified in recommending the re-
noval of Director General R;.thbonc.
Whether or not the latter was guilty
with Nicely in the embezzlen-euts. he
saws there can be no doubt that iii
the matter of unauthorized per diem
allowances, personal expenses and
warrants cashed and unaccounted for,
he unlawfulIy appropriated to his
own use money of the Cuban reve-
nueS.
Mr.. Bristow explains that the hui
reau of finances inaugurated by Mr..
Rathbone, of which Neely was APP
pointed chief was started July I, 1899.
This bureau was charged with Gus
tody of all stamps and postal sup
plies. The division of postal accounts.
changed July l, 1S99. to a division of
the auditors office, was in charge of
w. II. Reeves, who was appointed by
the secretary of war. The report
says that no accounts of the unbonG-
ed postmaster were required, remit
and the only information the audi
tors office had of these transactions
came from Neely. There was no check
on his transactions. From the ac-
counts examined the report says the
minimum of Neely's embezzlemcnts
may be summarized as follows:
Shortage as shown by his own rec
ords. S3O,6CO; excess of credit by de-
struction of surcharged stamps def
nitely ascertained, $101,113; total
$131,7 This viii be increased by
the discovery of additional sales of
surcharged stamps, but will not ex-
ceed $150,0G0 in the aggregate.
The report says that Eathbone APP
pointed Nicely, who had custody of
the stamps; Reeves. the only man
who could have check on Neely's
transactions, and y. Nartield, chief
of the bureau of registration, a com
mission to destroy the surcharged
stamps. of which Neely had received
S522, 900, and that Neely and Reeves
entered into a conspiracy to report
larger quantity of stamps destroyed
than were actually destroyed But.
the report 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 otli-
cial depravity."
The connection between Neely and
the Ncely Printing Co., of Muncie,
Ind. of which he was proprietor be.
fore he went to Cuba, is then eN-
planned. The alleged sale of the plant
OF this company to Cowan, NecIy's
business associate, the report says.
was not bona fide transaction, as ii
is not believed Cowan ever paid Nicely
any money for his pretended interest.
Nicely ordered from this company
supplies for the department of posts
in Cuba.
The books of the printing company
show that it received for printing
$7,937, while the bills paid and the
money order records at Muncie show
that $2.131 more than the amount in
dicated by the books was paid. Some
of the bills were paid twice.
Rathbone. when asked why he APP
proved these accounts. said he did not
know until after Neely's arrest that
any printing was done at Muncie. If
this statement is true, says the ne
port, he convicts himself of the most
utter negligence of official duties. The
department of posts purchased from
the Keyless Lock Co., of indianapolis,
S14,974 worth of furniture. This com
pany paid Neely $3.292, in two checks.
For what purpose this money was
paid him does not appear. The only
reason is that it yas paid as com
mission" Subsidy" or bribe for the
privilege OF supplying the furniture.
In July, 1890, the money available
for salaries was delayed at Neely's
suggestion. RatSbone authorized Il
warrant on the uneXpended balance
for the fiscal year ending June 80, for
S7,251. This sum was to be reimburs-
ed after the July fund became avail
able, but when Nicely obtained the
warrant on the July fund, instead of
depositing it he cashed it and made
no accounting of the money.
When Neely was assigned TO duty
in Havana, January I, 1899. his salary
was 81 500. The report says he was
at this time financially embarrass ssed.
His account with the Union national
bank. OF Muncie, was frequently over
drawn. February 6, 1899, he sent Il
deposit of 1929 to the Muncie bank
and in February and March his addi-
tional deposits aggregated $3.50.
Thus Neely, with a salary of $50 a
month. was able within three months
to deposit 1859. conclusive proof
that his embeZZlement began III Feb
ruary, 1899.
Rathbonc mad Iu!ar2 ous Official
trips. in April, 1899, he made a tour
of inspection accompanied by his fam
lily, and his expense account covered
the entire expense of his family. In
May. 1899. he came to the United
States and charged up as of1icial ex-
penses his expenses to Cincinnati and
Hamilton, O., where he went on pri-
vate business. The report says Rath-
bone was aware that these cha cges
were fraudulent"
Cowan's Statement.
Muncic. Ind. July 27.-Ross Co.van.
e la n I,.;, ~