New-York tribune., 1900-05-09
CUBAN POSTAL SCANDAL.
NEELYS ALLEGED DEFALCATION CON
sIDERED BY THE CABINET.
THE GOVERNMENT TO PROCEED AGAINST
THE ACCUSED OFFICIALS BONDSMEN.
rBY TELEGRAPH To THE TRIBUNE

TBY TELEGRAPH TO THE TRIRUSE.l
Washington May S.-The disclosure OF As
sistant Treasurer Neely's alleged official irregu-
larites and defaults in Cuba shock TO
members of the Administration, we'll as OF
Congress but it was hardly In the nature Of
surprise to some of the latter who have felt
anxiety and uneasiness for months on account
of the system of the measures of official ac-
oountability adopted in regard to the collec-
tions and disburse nents of revenue under the
War Department cot only in Cuba. but in Porto
Rico and the Philippines. The matter the
subject of earnest discussion in the Cabinet
meeting to-day. Secretary Root reported the
facts far as they known and he and
PostmasterGeneral Smith contributed all the
information in their possession. Secretary Root
explained that Colonel Burton. of the Army,
who discovered the defalcation in the course Of
his regular duties officer of the Inspector
Generals Department, left Cuba Sunday
night on the transport Ingalls,, and is expected
here in few days to report the details OF the
affair.
NEELY TO BE TRIED IN CUBA.
The question of most interest before the Cab
met whether the defacation was against
the United States or Cuba. and therefore
whether legal impediments could be placed in
the way of the extredition and trial of the al
legged criminal The opinion was that as the
United States is he trustee for Cuba the crime
was committed against this country. and that
Neely could be sent back to Cuba and tried
there. The belief is that Governor Roosevelt
will honor requsition for the return of Neely.
The Attorney General is considering the legal
means to be employed to bring the accused man
to trial The Government will proceed against
the bondsmen of Neely to recover much of
the shortage as possible, and will return it to
Cuba.
Postof1ice Inspector Cochran. who went to
Rochester to get Neely. said to-day that he had
been acting since Saturday under the direction
of the War Department. with the approval of
the Postmaster-Cieneral. This said in
planation of the connection of the PoStOfffCe De
partment with the matter. the postal service in
CUBA being directly operated by the War De
partment, all the other branches of civil
administration. although the former is indirectly
under the supervision of the Postmaster General
and the head of it. E q. RathbOne. was formerly
Fourth Assistant Postmaster General. In con-
versation with him, Mr. Cochran said. the ac-
cused man denied his guilt and declared that his
official accounts had all been inspected and ap-
proved about a month ago. When asked if the
cation he said that so far he knew it not.
that the Department of Posts of Cuba. under Mr..
Rathbone,, had an entirely different system of
inspection and, SO far as he knew, compe-
tent to investigate any such case
THOROUGH INVESTIGATION TO FOLLOW,
Postmaster-GeneraI Smith said to-day that he
had a general knowledge of the affair, but as
yet there were no proofs so far he knew, of
the guilt of Neely; that the Postofice Depart
ment in cable munication with Mr..
Rathbone. and that a thorough investigation
would undoubtedly follow. Perry S. Heath. the
First Assistant Postmaster-CSeneral, said that
he knew Neely, and had always regarded him
as an honest and capable man. He never had
any business dealings with him directly or in
directly. This statement recalled to Mr. Heath
a special dispatch published in morning news
paper, connecting by inference his with
the Neely Publishing Company. He said that
he was not now has he been for twenty
years, a stockholdar in any printing establish
ment in Muncie, Ind. Two of his brothers
stockholders in a corporation which three
four years ago purchased a newspaper of Neely,
but that property is in way connected with
the Neely Job printing establishment