Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1900-05-08
CUBAN POSTAL FRAUD
Former Treasurer Of the Postal De.
partment in Cuba Under seri.
Gus Charges.
90 is Said to Have Embezzelsd
$4,000 Of the Government
Funds
The Cuban Treasury Believed to
Have Been Defrauded Of Nearly
100000.

Havana, May s.-Charles F.. Neeley,
formerly treasurer of the postoffice de-
3partment in Cuba and now in custody
in New. York, is alleged to have embez-
zled $4,000 of government funds. Dur
ing the last four months, 1t is charged,
the shortage in the aggregate has never
fallen below that sum, and that prior to
the beginning Of the year the average
was much higher.
II IS also charged on authority be-
lieved TO be trustworthy that since July
of last year the government has been.
ldefrauded of nearly 100000 on stamped.
paper alone. The culprit or culprlts
are believed to have received $2S.0O0 and
TO have accounted for only $4,000.
The news OF the arrest OF Neeley in
Rochester, n. y. was the first intima-
ton TO the public here that alleged.
frauds had been discovered. Officials,
however, had been investigating for
sometime thru the agency of Col. Bur-
ton, the Inspector general. The colonel.
found affairs so seriously involved that
he decided to go to Washington at once
and make personal report to the gov
eminent. He sailed yesterday morning
on the United States transport ingalls,
for Fortress Monroe.
4 1t is believed the alleged frauds will
involve other officials here. and more
arrests may follow. Auditors Reeves
and Reynolds have been temporarily
suspended.
The papers asking for Neeley's extra
idition lef; for the United States yester-
day afternoon. 1t is understood that
the Fidelity Deposit Company of Mary
land is ON his bond for 100000.
For a long time Neeley lived extrava-
gantly Maj. Rathbonc, director Of
posts, set special agents at work in;
svestigating the matter when first 1t
was called to his attention some weeks
ago. These agents reported on April 8
that the accounts were correct.
Gives Bail in New York.
New York, May, s.-Charles F. Neeley,.
financial agent of the United States
postal department in Cuba and one OF
the most prominent government Off
calls in Havana, was held in $4,000 bail
by Commissioner Shields yesterday on
a charge OF embezzling sac, 600 from the
postott1ce funds.
Medley. who was elegantly dressed
and who. his friends say, has handled
millions of dollars in Office. put up two
$4,000 treasury notes late in the after.
noon and was released on that security,
Medley arrived in this city from Ha-.
vana on April 80 and went to the Wal.
dorf-Astoria. Sunday morning he left
for Muncie, Ind. He made absolutely
no conceaiment OF his movements. and
at the Waldorf Astoria met many
friends.
Only a few hours before Neeley start
ed west Chief Inspector John D. King
received a telegram from Washington
asking him to arrest Medley. King went
to the Waldorf Astoria and found Neel-
ey had started to Muncie. The inspect
or wired to Rochester, where Medley was
arrested on Sunday. He was brought
here Monda. morning. On his person
was found s6.5O21s
Medley refused to talk about his case
further Than tosay it would come out
ali right and that big mistake had
been made. To his friends he declared
ne was not running away, but was on
mis- way to Muncie whence he expected
TO go to California to see his Wife. A
friend said it was known in Havana for
three weeks before Neeley left that he
was coming to the States for an eight
| weeks vacation.
Neeley has held his position in Cuba
| d year and a half. His deputy Is Cory
don Nj. Rich, formerly his assistant in
the newspaper business in Munce. Neel-
lis president and Rich is the secre-
lltary and treasurer of a brick company
| recently formed in Havana. 1t has big
4 plant on the outskirts of the town. He
Is also one of the active promoters Of a
/ Nest Indian fruit concern, which aims
lat monopoiaing the cocoanut trade in
]Cuba. 1t has headquarters at Balacoa
4 where the postmaster was Neeley's spe-
1 cial agent Another venture with which
| Neeley is connected is a large asphalt
looncern which is booming its business
/ on the island.
Secley nnInd1ann Man.
4 Washington. D. c.. May S-Charles
/ F. Neeley, who has been arrested
chargea with embezzling Cuban postal
funds was appointed from, Indiana as
lchief Of the finance division iii Cuba
4 He has held no other position under III,
government. Postmaster General Smith
isaid today that the department had be-
5gun an investigation in regard to
4 Medley some time ago. but that the frs,
definite information upon which the
authorities could act came 10 their pos
session on Saturday.
Surprise to His Muncie Friends.
i Nfuncie Ind Nav S-cba rice II NJ,