The times. [volume] (Washington [D.C.]) 1897-1901, 1900-07-26
-eely,s embezzlements that can be arrived

Nealys embezzlements that can be arrived
at.
Numerous exhibits are submitted with
the report relating to Neely's financial
transactions in detail
Director General Rathbone appointed C..
F W. Neely chief of the bureau, OF finance,
who had custody OF the stamps: W. H.
Reeves, assistant auditor for the Island Of
Cuba, the only man who could in any way
have had a check upon Neely's transac
tions. and D. MARRIED., chief OF the bureau
of registration, as a commission to destroy
the surcharged stamps. Necly and Reeves
entered into a conspiracy to report larger
quantity OF stamps destroyed than were
actually destroyed and thereby defraud
the Cuban government.
Fraudulent transactions of Nicely.
NeeIy's fraudulent transactions, however.
were lot confined to embezzlements only,
and while the amounts thus received by
him were small as compared with the out
right embe&zlements. yet they show the
same ci.iciaI dePraEity and utter disregard
FOR tie interests Of the public service. Ee-
fore SONG TO Cuba Neely wEs engaged in
the priEting business at MunCie, IND,
being the proprietor of the Neely Printing
Company. lie had a business associate, or
emp eye, named COwan. Neely claims to
lieveG, however, that Cowan ever paid
Nec.y any money for his pretended inte-
est. Nicely sent this company large orders
for printing for the department OF posts of
Cuba Cowan fixed the prices and rem
GeTed the bills in the name Of Cowan &
Co. Cow3n says he was instructed to do
this by EeCiy. who did not desire the name
OF the Nssly Printing Company to appear
in tho business transactions OF the depart
meut of posts. The books of this printing
company show that COwan received from
the Department of pests for printing 81,
$3.50. while the bills rendered, marked
paid a.d the money order records at Nun
Gle Ind. show that he received Is,
or S.1sl.5 80 more than indicated 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 defraud the Cuban
government
Dirsctor General Rathbone, when asked |
why he approved these printing bills and |
permitted them to be paid-some of them |
twice-said that he did not know until af- |
ter NeeIy's arrest that there had been any |
printing done at Muncie for the depart |
ment OF posts. II this statement is true, |
he ccnyictS himself of the most utter and |
indefensible negligence Of his official du-
ties, for every bill required his approval |
before 1t was paid.
the Cuban postal service December "a,
1888, and assigned to duty in Havana jan
uAry I, 1899. His salary was fixed at 81. 500
per annum. He was financially cmbar-
rassed at the time OF his appointment.
He Gid his banking business with the
Union National Bank, Of Muncie, and bis
account was frequently oyerdrawn. On
February 6. 1899. he sent a deposit OF
1929. - from Cuba to the Muncie bank,
and in February and March his additional
deposits aggregated 81, $50. Thus Neely, |
with s salary OF 81, 500, or $3.50 a month,
was able within three months to deposit
81, ,S59. .75. which is conclusive proof that
his embezzlements began in February,
1899. IN Nay he deposited SSS7.2S; in
June. $775-24; in July, Ss63; on August II,
sI3 1z5 80: on October 8, $50. .250. and
number Of deposits Of lesser amounts were
made afterward. The destruction of sur
charged stamps occurred September II.
which indicates that Neely at that time
formed the purpose of covering up
large defalcation in the alleged destruc-
tion Of these surcharged stamps.
Purchases of PostOfiice Furniture.
The Keyiess Lock Company OF Indian
spolis. Ind. is a corporation which manu-
factures postofhce furniture. The depart
ment Of posts purchased from this COM
81, 4,S7s25 worth OF furniture. Neely |
seems to have been absolute in the mat
ter Of purchases, not only OF Office furni- |
ture, but Of other supplies. This com
pany paid Neely s., ,292 in two ohecks-One. |
dated October l. 1899, drawn upon the |
Indiana National Bank Of Indianapolis for !
s.. .972, and the other. dated January 1, 1900, |
for $500. For what purpose this money |
was paid him does not appear The only /
reasonable conclusion is that It was paid |
as q commission" subsidy" or bribe /
for the privilege OF supplying postofice
furniture TO the department OF posts of
Cuba.
Estimates for the expenses Of the de-
partment OF posts were submitted by the
director general monthly. When approved
by the Governor General Of the island the
money was deposited in bank to the credit
Of the director general OF posts and paid
out on warrants drawn by Rathbone. The
approval Of the estimate for July, 1899.
was in some way delayed. and the first
half months salaries OF the employees Of
the department Of posts and the Havana
pos tof1ce for that month became due be-
Tore the funds were available for payment.
Nicely suggested that as there was an IN
balance for the fiscal year ended
June 30 warrants be drawn upon that fund
'or the payment Of the half months sal
aries cue, ana dlter the I0nQS Tor July
we're received warrants could be drawn
snd deposited, reimbursing that fund for
he amount so drawn. Such a proceeding
vas approved by Rathbone, and warrants
amounting TO 81, 25ls4 were drawn and the
employees paid. Warrants for the purpose
II reimbursing this fund were also drawn,
tut instead Of being deposited to reimburse
.hs fund they were csshea by Neely and
40 accounting made of the money.
Had Business Enterprises.
Eeely, with the money he had secured
BY embeLEleuent and fraud, began branch
ng out in several business enterprises.
Hs organized the West Indies Trading
Company for the purpose of dealing in
in which he invested about s12.-
500. He also became interested in brick
plant near Havana in
which he claims to have invested about
10000. He had some mining schemes IN
South America. In company with one A. p.
Taylor, alias Philip Troutfetter. formerly
of the State Of Colorado. who is said to be
wanted by the Pinkerton detective agency
'or crime committed in that State. c. VI.
Rich. who was brought to Havana from
Muncie by Neely as his assistant chief |
claims to have told General Rathbone in
April Of this year that Nicely was crooked. |
Rathbone denies having had any such con-
Fersation with Rich. Rich claims TO be in
1ocent, but he at least had knowledge of |
Neely's entertainments long before he I
;laims TO have told Rathbone Reeves. the
assistant auditor, in a statement, confessed
% Inspectors Smith and Fosnes that Neely |
for Inc - | 4