The times. [volume] (Washington [D.C.]) 1897-1901, 1900-07-26

bills and such expenditures are wholly un-
warranted. and bear the strongest eyi-
dences OF corruption. Therefore. for him
to approve such accounts renders him
equally guilty with Neely. The total
amount of these miscellaneous expendi-
lures was 81 29O.5S. A part OF this was
probably legitimate, but a large part we:e
doubtless fraudulent expenditures, for
which Rathbone, Neely, and Reeves are
equally responsible.
EmbezzIcmcnt by f. II. Thompson.
In September, 1899, Mr.. E. P. Thompson,
postmaster at Havana, caused to be issued
in his own behalf four money orders for
500 each, and instead of depositing the
money therefor he placed bis duebill in the
drawer for $500. Some time afterwald an
inspection of the office was made. Thomp-
son, being advised in Advance, placed 81 0
in the drawer from remittances he had re-
ceiYed that morning, postponing the
entry of these remittances until after
the inspection was finished. Then he W. tn
drew the $500, replaced his duebill, aid en-
tered up the remittances. Thompson knew
that his act was a crime. and when he COW
cred up his shortage and deceived the in
specting officers he plainly showed that lie
was aware he had seriously violated the
law.
In discussing the inspection made by
Rathbone's special agents on April %, 1900.
the report says that Neely had been noti-
fed that an inspection was to be made and
that the inspection was delayed at Neely's
request until about 2 o'clock in the after
noon in order that he might get ready for
the investigation.
Neely occupied the most confidential re-
lations with Rathbone and was regarded
as the most influential with him of all the
postal employees
Rathbone Had Been Warned.
In May, 1899. United States Inspectors
Sullivan and Letherman inspected the ac-
counts CT the bureau of finance, and in
their report indicated that there were ir-
regularities in the stamp account with
postmasters. They stated that there was
no check against the accounts of the chief
of the bureau of finance, and recommended
a form by which a check could be had.
In October, 1899. George W. Marshall.
one of the bookkeepers in the bureau of
finance, and acting chief in Neely's alb
sence, advised Director General Rathbone
that he was not depositing all of the mon
ey received; that Neely had instructed
him to hold out certain amount, giving
some excuse therefore.
In January. 1900, H. II. Williams, a spe-
cial agent, told Director General Rathbone
of the bureau of finance in regard
to the receipts of the ,datanzas postofIice
He stated that the receipts were several
dollars more than the records Of
the bureau of hnance showed. Director
General Rathbone states that he remem-
bers nothing of these conversations with |
Williams or Marshall, and regardless of
these warnings Neely seems to have re-
tanned his full confidence.
Thn
penditures in the payment Of debts and liv-
ing expenses were much in excess of his
salary; that in September and October,
1859. within thirty days after the destruc-
ton Of the surcharged stamps, Rathbore
paid over s.. 900 Indebtedness. In discuss
ing this subject the report says: 1T is evil (
dent that the money with which this in
debtedness was paid was secured from some /
other source than his salary and up to /.
this time / have been unable to learn OF /
any source OF income that Director Gen /
eraI Rathbone had other than his compen-
sation as director general OF posts"
The report closes as follows:
Conclusion.
In this report have not endeavored to |
go into minute details. presenting as briefly ,
as practicable the more salient features. /
Additional Information will probably be Sc
cured, but not of such a nature as to ma !
terially change the conclusions.
Director General Rathbone maintains /
that he is innocent of wrongdoing; that |
these extensive entertainments are the
result of dishonesty on the part OF sub
ordinate officials who had been well recon-
mended to him as honest and upright men.
and that he had found no cause TO doubt
their integrity or efficiency OF administTa-
,ha ~,
.he investigation were a great surprise to
him and wholly unexpected; that he had
believed up to the 6th day of May last that
he accounts Of the department of posts
we're kept systematically and honestly.
Granting that what Director General
Rathbone states is true, he convicts him
;elf OF the grossest carelessness in the |
of the affairs Of his ofice or
II an utter incapacity to comprehend rs
.uties and responsibilities.
That he was careless, loved ease, and
'efused to give attention to details there
5 no doubt He depended largely upon
lis subOrdinates. even requiring his chief
Jerk to sign his name to a large part OF
lis correspondence apparently for no
,ther purpose than to save the physical la
,or necessary to append such signatures
himself. But carelessness cannot account
or the drawing OF fraudulent per diem,
personal expenditures from
he postal revenues, nor for the cashing Of
he warrants and q failure to account for
he money received thereon. Whether Cen
raj Rathbnne was guilty with Neely in
he entertainments endeavored to be COW
red up by the destruction OF surcharged
tamps Is at this time a question more OF
,pinion than proof but there can be no
oubt that in the matter of the per EN-,
PERSONAL expenditures and the warrants
which were cashed and the money unSc-
ounted for. he unlawfully and fraudulent
Y appropriated to his own use money from
he Cuban postal revenues Nicely, Reeves,
Thompson, Moya, and Mascara are now IN
Ter arrest, and Rich is held as a Govern
Dent witness.
From the information obtained by this
investigation, which have endeavored 10 .
ct forth in the foregoing pages. II is my
elief that I was justified in recomm md
ng the removal Of Director General Rath-
,One from Office; and l further believe that
e should be required to answer for fraud
lently and urlawfully appropriating to his
wn use moneys from the postal revenues
( Cuba
Sent to Secretary Root.
The report was transmitted by Poztmas- ,,
sr General Smith to the Secretary of War
esterday. {
What do you propose TO do about Rath-
ones connection with these frauds was
sked Postmaster General Smith
We can do nothing" he replied. we
ave forwarded the report with the ex-
ibits to Secretary Root. Mr.. Rathbone Is
OF even in the United States. but is In c
uba, under the jurisdiction OF the Gov
rnor- General and OF Secretary Root. We
ave no Jurisdiction over him whatever