Evening star., 1900-05-12
TO BE SUSPENDED
Gen. Rathbone to Be Relieved From
Office.
WOOD WANTS NEELY EXqRADIfED
Deputy Auditor Lawshe Going to
Havana.
A THOROUGH EXAMINATION

There were some sensational develop
ments at the Post Office Department today.
Postmaster General Smith spent nearly the
entire day discussing the frauds in Cuba
There has ceased to be element Of doubt
now. All are convinced that there has
been considerable stealing in Cuba.
Who are responsible for it remains to be
determined and this will not be definitely
known until the commission Of investigation
makes its report. 1t is now alleged that the
auditor for Cuba is involved. and an old
post office official told a reporter of The
Star today that he believed no one else
would be implicated.
1t was comparatively easy for the treas
urer and the auditor to concoct scheme
to defraud and carry it to a successful ter
minaton for time, at least.
Postmaster General Smith gave the in
vestgating committee instructions this
morning and spent the major part OF the
forenoon going over the case with Col
Burton who arrived at the department
early in the day, with a mass of evidence
discriminating certain officials in Cuba
There is no longer any concealment OF
the fact that the Post Office Department Is
convinced that great fraud and maladm!n-
istration have been going on in Cuba. es-
pecially in the post office branch, for some
time.
1t was stated this afternoon that the ad-
ministration is thoroughly convinced that
the director general of posts has been most
lax in his administration Of the trust re-
posed in him, and that as a result OF the
investigation thus far concluded Will be
Immediately suspended
In fact. 1t is said the order has gone to
Cuba directing the governor general OF the
island to Immediately suspend Director
investigation The post office officials do
not believe that Major Rathbone is in any
way connected with the frauds, but it is an
open secret they have located a number of
laXities of which they are bound to take
cognizance.
There have been extravagances of the
most fragrant kind. It is said, but the post
office officials, while disclaiming any de-
sire to shirk responsibility in the matter. do
not feel they are responsible for any of the
shortcomings of the postal service in Cuba.
Neely's Extradition Asked.
Acting Secretary Meiklejohn received an
express package this morning from Cen
eral Wood at Havana. containing an ap-
plication for the extradition of Mr.. Neely,
recently arrested at Rochester, N. Y, for
the alleged embezzlement of Cuban postal
funds and now under $2O,O0O bail for a
hearing in New York city next Thursday.
AS soon as he realized the character of the
document Mr.. Meiklejohn Immediately sent
1t to the Department of Justice for the ac-
ton of the Attorney General, who will un-
doubtedly cause it's presentation to the
governor of New York without delay.
Acting Secretary Meiklejohn has appar-
emily been charged with the direction of
the prosecution of the inquiry into the
Cuban postal frauds. Probably this is by
virtue Of the fact that, as assistant secre-
tary, Mr. Meklejohn has been in charge Of
all matters in the War Department per-
tanning to the insular possessions Of the
United States. and consequently has,
through specially erected bureau in his
office, kept accounts of all the receipts and
expenditures of the islands, including
Cuba.
At noon today the assistant secretary re-
tired into Secretary Roots private office
for a secret conference with Deputy Au-
ditor Lawshe and the post office inspectors
who have been detailed by Postmaster
General Smith to investigate these Cuban
postal frauds. The conference was a con-
tinuation Of one held yesterday which last
ed until o'clock last night. Beyond the
fact that the participants are carefully e1-
amining the data brought up from Havana
by Col. Burton nothing could be CLEANED as
to the nature Of the proceedings
Credit Given Col. Edwards.
Col. Edwards, the army officer in charge
of the division of customs and insular af-
fairs, was also called into the conference
for a time, in view o fthe fact that he has
obtained much valuable information bearing
on the subject matter of the inquiry through
special reports called for by him from the
War Departments agents In Cuba. Indeed,
there is an intinlation to the effect that 1t
was through a report called for by Col.
Edwards upon the assumption by him OF
the direction of insuar affairs a short time
ago that the first evidence of the postal
frauds was unearthed.
ConceaIment of the Matter.
The officials here who have been cognizant
Of the steps that followed this first report
express surprise that the whole matter has
been SO successfully concealed from the
public up to this time. They say that while
it was the purpose of the prosecuting Off
cia,s to avoid publicity until they had taken
precautions to prevent the escape of any
guilty person, it Is surprising that they
should succeed, in view Of the fact that
this whole matter has been subject for
discussion among the American colony in
Cuba for some time past. They also state
that the opinion prevailed In Havana that
Neely was not alone and that other Off
cials were said to have been associated
with. him.
Secretary Roots Statement.
Secretary Root occupied nearly two hours
in telling the President and his colleagues
in the cabinet yesterday what Col. Burton
had communicated to him. and in explain
ing the line OIL aCClOil he DclitFeA SAouto 10
pursued in prosecuting Neely. It did not
appear that other persons besides Neely
had been implicated. but on the other hand,
the evidence was incomplete that 1t was
not certain either that Nicely had not con-
federates. The cabinet was convinced that
there should be further investigation on
this point Meantime it was decided that
there should be no arrests In Cuba on suS-
picion, and that only upon satisfactory
prima facie case should any suspect be put
under detention. This was decided upon to
avert the possible grave injury that the
character of any person arrested might
suffer in the present excited state of the
Cuban mind.
For the same reasons there will be no
suspensions of the officials in Cuba. except
upon satisfactory proof that their continu-
ance in office retards or obstructs the inves-
tigation. Indirectly this statement covers
the proposed abolition of the office of d.
rector Of Cuban posts and the merging OF
the post office management In the island
with the military administration as it stood
originally Some such action may follow
in the future as the weak spots in the ex-
listing system are developed. but up to this
moment the President has done nothing in
that direction.
Quick Action Expected.
Mr.. Lindsay, counsel for Neely, left
Washington for New York yesterday after
noon. He was unable to see Secretary
Root. The present case is said to be one