The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1900-07-26

auditor ana receipt taken lielelOr lne
other warrant was lost, and payment
stopped 1t was never found or pre-
Sented for payment. On June 80 fol
lowing warrant was drawn In favor
of II, G. Rathbone for $500, in lieu OF
warrant No 1904, lest; and on July it
was indorsed by Rathbone and cashed.
No accounting has ever been made by
Rathbone for this $500.
When he made his trip to the United
States in April and May, 1899, he also
drew two warrants in tn esum of $500
each, both payable to himself. One
was cashed al Habana on April %, be-
fore he sailed. From this warrant the
expenses of the trip, aggregating $425.45,
We're paid, and the remainder, $74.55,
appears to have been returned to the
auditor. The second warrant was CASH
ed in Washington by Rathbone HIM
self, and no accounting has ever been
made of the $500 so received. No part
of it was necessary to defray the ex-
penses of the trip, the expenses having
been paid from the proceeds of the war
! rant cashed in Habana. In discussing
this subject the report says:
From the records it appears that Di-
rector-General Rathbone has drawn two
warrants to himself in the sum of $500
each, received the money thereon and
made no accounting whatever for the
same to the department of posts. There
| stands against him, therefore, the
! charge of unlawfully appropriating ST.
900 Of the Cuban postal funds to his own
| use.
| EXPENDITURES FOR WHICH
NO VOUCHERS WE'RE FILED
There We're many large expenditures
by Rathbone and Nicely for which no
vouchers were filed, when vouchers
could have been easily obtained. These
expenditures were usually made by
Nicely and approved by Rathbone AS
sistant Auditor Reeves. when asked
why he 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 order
ed pad--a statement which, if true, in
dicates that he had no conception of
the duties and responsibilities OF an ac-
counting officer. The report says: IT
do not credit Reeves statement, how
ever; the evidence is too strong Of cell
fusion existing between Nicely, Rath-
bone and Reeves for the purpose of
passing these unwarranted expenses ac-
counts" For some months such miscel-
laneous expenditures aggregated as
much as $3.50. Such items as repairs,
$780," freight. $780," miscellaneous
expenses. $7S," appear without any re-
c5ipts or accompanying vouchers what
ever. Director General Rathbone on
being asked as to these miscellaneous
expenditures. said that he supposed
Nicely was honest and that the accounts
were right, and he therefore ordered
them raid.
General Rathbone has been engaged in
the government service many years, and
knows that such method of presenting
bills and such expenditures were wholly
unwarranted and bear the strongest
evidences of corruption Therefore, for
him to approve such accounts renders
him equally guilty with Nicely. The to-
tai amount Of these miscellaneous ex-
penditures was s6,290,5S. part of this
was probably legitimate, but large
part was doubtless fraudulent expendi-
lures, for which Rathbone. Nicely and |
Reeves are equally responsible.
ENLIGHTENMENT OF e. P. THOMP- |
SON.
In September 1899 E. p Thompson, |
postmaster at Habana. caused to be is
sued in his own behalf four money |
orders for 800 each, and instead of de- |
posting the money therefore he plac- |
ed his duebill in the drawer for $500. |
Some time afterwards an inspection of |
the office was made.i Thompson, being
advised in advance, placed $500 in the
Il ne
inspection was finished Then he with
drew the $500, replaced his due bill, and |
entered up the remittances. Thompson
knew that his act was a crime, and
when he covered up his shortage and
deceived the speeding officers he plainly
showed that he was aware he had serb
ously violated the law.
OF IRREGULARITY.
In discussing the inspection made by
special agents on April %,
1900 the report says that Nicely had
been notified that an inspection was to
be made, and that the inspection was
delayed at Neely's request until about
O'Clock in the afternoon, in order
that he might get ready for the inves-
tigation.
Nttly OCCUPIED the lHoSt fOnnQent1al
relations with Rathbone and was re-
guarded as the most influential with
him Of all the postal employees
RATHBONE HAD BEEN WARNED.
In May 1899, United States Inspectors
Sullivan and Letherman inspected the
accounts of the bureau of finance, and
n their report indicated that there were
Irregularities in the stamp account with
oostmasters They stated that there
vas no check against the accounts of
he chief Of the bureau of finance, and
recommended form by which check
,ould be had
In October, 1899, George w Marshall
me of the bookkeepers in the bureau of
nance, and acting In Neely's absence
advised Director General Rathbone
hat he was not deposting all the
money received; that Nicely had in
'tructed him to hold out a certain
mount, giving some excuse therefor
In January 1900. Fl. Fl. Williams. "a
pecfal agent, told Director General
iathbone that there was something
wrong with the accounts Of the bureau
# finance in regard to the receipts of
he Matanzas postoffice. He stated that
he receipts were several thousand dol