Virginian-pilot. (Norfolk, Va.) 1898-1911, 1900-05-17
CUBAN POSTAL FRAUDS.
POSTMASTER THOMPSON ADMITS
TIES-EVIDENCE
AGAINST NEELY IN
CREASINC,
(By Telegraph to virginian-Pilot.)

havana. May 16.-Warrants were is
sued this evening for the arrest of E.
Z, thompson. the Havana postmaster;
w. II. Reeves, deputy auditor of the is
iand, and Edward Nora and Judge
Mascaro. Cuban clerks in the stamp
department, and by Z o'clock all were
looged IN the Vivic, the Tombs of Ha-
vana. This was done under the advice
or the postal inspectors who arrived
pIo.dsy. 1t Is considered now that
reeves Is equally guilty with Nicely.
investigation into the record OF the
clerk In the military department, who
handled several hundred dollars worth
OF stamps, proves that the transaction,
so far as he Is concerned, was legiti-
mate. The stamps were purchased at
the request of his brother, who is a
stamp collector in the United States,
for $500 They were of the old issue and
were obtained from Nicely.
The arrest of Mr.. Thompson caused
great surprise In the city. 1t is looked
upon as the precursor of many other
arrests. General Wood felt as did the
postal inspectors, that 1t would be bet
ter to have the suspected persons ar
rested and to give them an opportunity
to obtain bail than to keep them indef-
initely under close supervision at n
time when the detectives are badly
needed for other work
~,
sentative Hay. of Virginia. to-day in
troduced in the House the following re-
solution:
Whereas. it is stated that f. G. Rath-
bone. director of posts in Cuba, made a
report to the Postma ster- General on
April %. 1900. in which he stated that
the postal accounts of postal officials
in Cuba were correct: and
Whereas. it is stated In the public
prints that the postal inspectors of the
Cuban postal service had not made any
inspection or reports of that date;
Resolved. by the House of Represen-
tatives. That the Postmaster General
be requested to inform the House
whether l.. G. Rathbone did on April
%. 1900. or Whereabouts, make such n
report. and what said report contained;
and 20 further inform the House
whether such report purported to be
based upon reports made to said Il. G..
itathbonc by postal inspectors in Cuba.
and whether the Postmaster General
has any information az to whether said
postal inspectors in Cuba ever made
such reports to f. G. Rathbone.
THOMPSON ADMITS IRREGULARI-
TIES.
Havana. May 16.-Postmaster E. p.
Thompson. of Havana, local officer. has
signed sworn statement, in which he
says that September 10 last, being in
order funds N35, giving his memoran-
dunn as n receipt for the same. When
the inspections were held Mr. Thomp-
son ordered Il clerk in charge of the
money order department to place re-
mlttances received that day, which
would not have to be accounted for
until the next day, sufficient to cover
the amount of his receipt which was
then withdrawn until after the inspec-
ton This was kept up until April 5,
when the special agents unexpectedly
discovered the recent which Mr..
Thompson then paid. He also admits
that Charles +. Nicely, late financial
agent OF posts at Havana. Endorsed a
bill for $3.50 which Thomson had dis
counted by the North American Trust
Company. Thompson admits other
irregularities in connection with his de-
partment.
PROCEEDINGS AGAINST NEELY.
New York. May 16.-Edward Jones, of
this city, has been appointed special as
sistant United States Attorney General
IN the matter of the proceedings against
Charles w. Nicely and other officials and
employees of the United States govern
ment in Cuba.
In speaking of the Nicely case to-day,
United States District Attorney Bur-
nett said that the hearing set for to-
morrow before Commissioner Shields
would most likely be adjourned for a
week and the extradition hearing in AL
bany postponed for day or two.
Havana, May 16.-It is asserted by
lawyers that OH Mr.. Thompsons own
statement he Is liable to arrest for en-
hez2lerlent- according to the provisions
of the postal law. which are very ex-
plicit. Much sympathy is expressed for
him, however. as it is felt that nothing
would ever have been heard regarding
the action to which he has confessed
had not the present investigation. grow
ing out of the general postal frauds,
brought the mater to light. His friends
are positive that the money would have
been repaid. the memorandum receipt
taken up and the incident thus closed.
AS the affair stands now, Mr.. Thomp-
sons career in the postal service must
necessarily cease. even IL he escapes Il
term OF imprisonment. Moreover. his
action in giving orders to postal clerks
to alter figures regarding stamps at the
request of Carridon Rich. without noti-
flying Mr.. Rathbone, makes things look
worse even If he acted innocently in the
belief that everything was correct.
POSTAL INSPECTORS BEGIN
WORK.
Four postal inspectors arrived this
morning, and. after a conference with
General Wood and MIR. Rathbone, inn
mediately began work. Mr.. Rathbone
declares that there is not the slightest
jealousy between the military authori-
ties and the postal department here.
and that General Wood and himself are
working in perfect harmony with refer
ence to all steps taken.
The local papers praise General Wood
for the interchangeable manner in which
ho has h Iod La ir1 irn lon