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

transactions OF the Bureau OF Finance. This
Bureau Of Postal Accounts on July I. 1899, was
changed TO a division OF the Auditors Office. and
its chief. Dr. W H Reeves. was appointed hy-
the Secretary OF War an assistant auditor for
the island.
There were two classes Of postmasters bonded
and unbOnded. Bonded pOsJmaSteTS were fur
nlshed postal supplies on credit and RENTED Tor
the same perloclcaIIy- UnoOnQed plslL1a7t-rS
were required to pay cash for all postal supplies.
Accounts were opened by the Bureau OF Finance
with bonded pOStmaSJers out all reTrltJdnceS
from unbOnded pOstmasters were entered as cash
sales No accounts were kept with these IN
bonded pOstuasters. POstmaSterS were not To-
qutred 10 report 10 the Bureau OF Postal Ac-
counts the amount Of their requisitions remit
tancas, so that all the information that bureau
had as 10 the financial transactions OF the
Bureau OF Finance was received from the CHIEF
Of that bureau Neely. himself Thus there was
tions. As result OF the investigation an able
70 submit the following summary OF the nna1-
cial transactions OF c. F. ". Neely:
s'2sk TsSeivea from January 1. 1893. to Nay
Cash received from ali sources January /
1879, 70 May - l9eO-.--.------------- 556s2S 50
Total $50
This ST. .527. $50 9s is the total amount with
which NeeIy is chargeabIe. His records. "a he
left them, show him entitled 20 the following
credits
s s59ss g On han hand ss1 esses
stock furnished to rstr1ss5er .55 1SI =, a.
Amount OF postal funds 44727s 81
surcharged stamps alleged 70 have been de-
sb sroyed - as2 $50 3
Suffrage 20 ua-aIlee- =
Total 52- $50 as
That is. if Neely had balanced his own books.
taking all the credits he claimed be yv0uId hsva
been short S3O6OO T3 But ne is credited win
1892 $50 81 for surcharged stamps DESTROYED
which IS in part fraudulent credit The sur
charged stamps were used from January J. 1S99.
20 august 81. 1879. when the new issue OF Gu
ban stamps was received Neely had received
7 sss12.t6s8 worth OF these surCharged stamps He
disposed OF and held receipts for $3.50 20 2n
worth, leaving balance on hand August 81.
1889, S291, $50 So So thar If he had destroyed
all OF the surcharged sIamps that he had on
hand August 81 he could not have DESTROYED
more than S291 $50 So worth or S10u. .I6S - less
than ne was given credit roI having destroyed
1t is not believed, however. that he destroyed
all the surcharged stamps that ne had on hand
There were S44 - worth in the Department Of
Posts on May 20 1900. when the inspection be-
gan: $500 worth were sold through The Havana
POsJOfhce April -, -6 and -. 1900. and
numerous other sales were made to- stamp deal
ers and collectors OF these surCharged stamps
after the reported destruction IL is not be-
Iieved. however, that these sales exceeded $50
600. and probably did not amount 10 that much
The minimum or NeelyS smbeZZlem5uts-
therefore. may be summarized as follows
Shoytaze as shown BY his ova rsso-ts, Ssosoo q
stamps definitely ascerratret. 1o111s Is
Total rs 81
This will be increased by the discovery OF ad-
ditionaI sales of surCharged stamps but viii
not exceed S15OO0O in the aggregate
An interesting compilation has been rnad5
from Neely's cash book It shows
Cash received from all T5s So
Cash accounted +Sl+al IL
Leaving cash shortage or-.-.--------.-- $1192Ts -
His cash books do not show an accurate
amount Of cash received, because there is evi-
dence that he did not enter on his books all the
cash received from unbCnded pOsJUaSterS. The
first computation is considered the most reliable
estimate OF Neelys ernoezzlements that can be
arrived at
Numerous exhibits are submitted with the re-
port relating 10 Neely's financial transactions in
detail.
Director General Rathbone appointed C. ?. ".
Neely, Chief OF the Bureau OF Finance, who had
custody OF the stamps: ". II. Reeves, Assistant
Auditor for the Island OF Cuba. the only man
who could in any way have had a check upon
Neely's transactions. and D. Aarfeld. Chief OF
the Bureau OS Registration. as a commission 70
destroy the surcharged stamps Neely and
Reeves entered into a conspiracy 70 report a
larger quantity Of stamps destroyed than were
actually destroyed and thereby defraud the
Cuban Government.
OTHER FRAUDULENT TRANSACTIONS OF
NEELY.
Neely's fraudulent transactions. however.
were not confined 70 enbezzlements only and
while the amounts thus received by him We're
small compared with the outright embez-
elements. yet they show the same official de-
rravftv and utter disregard for t6e fntaresrs o.
the public service. Before going 10 Cuba NeeIy
was engaged IN the printing business at Nun
Gle. Ind being The proprietor or the Neely Print
ing Company. he had g. business associate. or
employe. named CoWan Neely claims % have
sold the plant 70 COwaC- II Is not believed.
however. that COWan ever paid Neely any
money for his pretended interest. Nicely sent
his company large orders for printing Tor the
Department OF Posts Of Cuba COwar fixed the
prices and rendered the bills in the name Of
COwan x Co COwan SAYS he was instructed
to do this by Neety, who did not desire the name
o. the EeeIy Printing Company 20 appear in
the business transactions OF the Department 81
Posts The books OF this printing company
show that Cowan received from the Depart
ment OF Posts fO~ printing $. .s3I 6p while the
bills rendered. marked paid. and the money
order records AT MUncie. Ind. show that ne re-
ceived S1Ou69 II, 8. l3l - more than indi-
Gated by the books. The investigation shows
that some OF the bills were paid twice and the
whole transaction indicates cOllusiOn between
Neely and COWan To detraud the Cuban Gov
ernuent-
Director-GeneraI Rathbone. when asked why
them 10 be paid-some Of them twice-said that
he did not know until after Neely's arrest that
there had been any printing done az NIuncie for
the Department Of Posts. II this statement is
true. he convicts himself or the most utter and
indefenSihle negligence Of his official duties for
every bill required his approval before it was
paid
Nelly was appointed 20 position IN the cuban
postal service on December -. 1SgS and as
signed 10 duty in Havana on January .. 1898
His salary fixed at 81 Sto per annun- He
financially embarrassed al the time OF his
appointment. He did has banking business with
the Union National Bank or AIunCie, and his ac-
count was frequently overdrawn. On February
POLAND' POLAND, POLAND, PoLANpl
Is the puresJ natural spring water in TIE world
-Advt-