The times. [volume] (Washington [D.C.]) 1897-1901, 1900-07-27
MR.. ROOT ACTS PROMPTLY
The Secretary of War Orders the
Arrest of RathbOne.
General Wood. Who Is in New York.
Notified by TeIephonc-Cablcs In
.fructions 80 Havana to Hnvc the
Former Director General of Posts
Taken Into Custody Immediately.

After spending the entire morning going
| over the Bristow report on the Cuban
| postal frauds. Secretary Root yesterday
| afternoon issued orders for the arrest OF
! e. r. Rathbone, former director general OF
/ posts.
Instead Of sending the order direct from
( the War Department to Havana. Secretary
Root talked by telephone with Gen.
| Leonard Wood who was at 135 Broadway,
New York and explained the necessity for
! taking Rathbone into custody at once. He
/ directed General Wood 10 give the neees-
I sary order as Military Governor of Cuba.
and General Wood Immediately cabled the
! order to Havana
! 1t was stated at the War Department
that all those implicated in the frauds
VIII be brought TO trial. All those not now
in custody will. it is said, be placed under
arrest today. Rathbone will be sent to
Jail and treated with no more considera-
tion than the Others
The sections of the penal code of Cuba
under which Rathbone may be tried are:
Article 402. The public official who
through inexcusable abandonment or neg
ligence, should enable the peculation of
public funds or property by another per-
son. shall incur the penalty of fine
equivalent to the value of the money or
property misappropriated.
Article 403 The official who, to the
detriment or hindrance of the public serv-
ice. shall apply to his own or to foreign
purposes the money or property placed
under his charge, shall be punished with
the penalties of temporary special tisquali-
ication and a fine of from 20 to so per
cent Of the amount diverted. II such un-
lawful use Of the funds were without det
! riment TO or hindrance OF the public sery-
ice. he shall incur the penalties OF suspen-
sion and a fine of from to % per cent OF
the amount diverted"
The application of the first section
makes Rathbone responsible for Neely's
entire peculation OF $4,000. In case of
Rashbone's conviction he would therefore
be liable to fine of this entire amount
Another section of the code provides that
an insolyent person, when fined, shall
serve sentence in prison Of one day for
every Is pesetas OF the fine. Provided
Rathbone should not be able to meet such
a fine 1t is estimated that 1t will take
about thirty-nine years to serve out the
fine. This charge is in addition to any
that might be brought for the alleged
wrongful conversion OF two drafts of $500
each of Cuban funds to his personal use
officials Of the Postofice Department
having secured the facts proving the part
taken by Rathbone and his fellows in loot
ing the revenues. say they have done all
that they can do. The American postal
laws do not extend to Cuba and It follows
that the thieves cannot be tried under
those laws.
Postmaster General Smith does not be-
Iieve he can push the prosecution Of the
offenders except by laying the facts before
the War Department. which is supreme in
Cuba. In forwarding the report OF Mr..
Bristow 10 Secretary Root, Postmaster
General Smith pointed out the specific
crimes laid at Rathbone's door.
It is understood that he personally favors
prosecuting Ratbbone on a criminal charge,
as well as prosecuting Nicely Mr.. Smith,
however, will not make any public state
ment as TO his inciinations. He says that
the matter is now in the hands of the War
Department and OF the Department OF JUS
tice. which will DO whatever is done in
prosecuting the former director Of posts.
II is uncertain what course will be taken
In the punishment Of Rathbone. He has
been for some time virtually a prisoner on
the island, and was held there under or
ders OF Geaeral Wood. He is considered
necessary witness against Neely. and
would have been detained on that account
alone.
Eeely is now in the Ludlow Street Jail
in New York. The requisltion for his re-
uoval to Cuba to stand trial has been
signed by Governor Roosevelt but his at
torneys have been playing for time in or
der 10 delay his extradition. They declare
that no crime has been committed. Their
appeal against his being delivered into the
custody of military officials of the island
will be argued in the New York courts on
August 2.
While Neely got away altogether with
$50 000 it is expected that the net loss
n the Government viii be about S74 900
+ was bonded with the Fidelity and De-
posit Company of Maryland for 800. 900 and
the company has offered to pay that
amount in full. In addition 5000 was
found on his person when he was arrested,
and he put up $40 600 cash bond in order
to secure his temporary liberty. Both of
those amounts have been secured by the
Government in order to offset his steal
ings.
1t is believed that Rathbone got
away altogether with between $1,000 and
sl00Ce. That amount includes the $1,000
cash for which he cannot account, and the
sums spent by him in living expenses and
the maintenance OF his princely establish
ment All of his bills. which have been
disaliowed. will be charged against him
and suit brought. 1t Is not believed that
he would be able to pay judgments Of that
extent, and then the Government would
have recourse to his bond The Fidelity
Company OF Maryland is Rathbone's surety
for $50, ,000 and that sum, 1t Is expected,
would more than cover all his shortage.