Akron daily Democrat. [volume] (Akron, Ohio) 1892-1902, 1900-07-26
But His Punishment, Compared With
NeeIy's, Will be Very Moderate.
Must Reimburse Government.
Nicely EmbezzIed Government Funds to the Ex-
tent Of $131, ,713---Rathbone Knew the
Stealing Was Going On.
Government Had to Maintain Retinue Of Servants For
Rathbone and Provide His Coachman With Fine Raj
ment---An Indugent Crew.

Washington, July 26.--(splD--Maj.
Estes G., Rnthbone, formerly director
OF posts in tn eisland of Cuba, who has
been practically under arrest ever
since ne was removed from Office, will
be formally arrested as a result Of
Fourth Assistant Postmaster General
Bristow's report, duplicating him in
the. postal frauds.
Copies OF Mr.. Bristows complete re-
port were furnished yesterday to Sen
ator Platt, chairman of the specific
committee Of the Senate investigating
the Cuban postal frauds, and to Secre-
tary of War Root, for transmttal to
Gov. Gen. Wood at Havana. 1t is ex-
pected that upon the receipt of the re-
port Gen. Wood will at once order the
arrest of Mr. Rathbonc. 1t is under
stood that the full report and exhibits
are to be printed for the senate COM
mittee and will then be made public.
In the meantime Postmaster General
Smith gave out summary of the re-
port today. This summary gives sub
stantially what has been heretofore
published regarding the speculations of
G.. #. W. Neely, as chief of the bureau
of finance, but it makes out worse
case against Director Rathbone than
had been generally expected.
Heretofore no one connected with
the postoffice department would take
the responsibility of saying that Mr..
Rathbope had been guilty of anything
more than carelessness In supervising
the administration of the department
posts, and of extravaganza in his per-
sonal expenses which were charged
to the Cuban postal revenues. Mr..
Bristow's report alleges not only care
lessness and extravaganza, but fraud
as we'll, charging that Rathbone had
warrants for 81 900 drawn in his favor,
that he had them cashed and that he
failed to account for the money.
The total direct embezzlements are
rather smaller than had been supposed
at the time that Neely was arrested.
Mr.. Bristow coots them up as amount
ing to $751;, ,7l3.S9. This total would
he considerably increased IL it could
be ascertained exactly how much
money had been expended In uuneces-
sary expenses or charged up as Tex
pcnscs' aud pocketed.
Mr.. Bristow finds that Neely's en-
bezzlcments aggregated at least $131,-
T1S, and says lie was justified In re-
commanding the removal of Director
General Rathbone.
Whether or not the latter was guilty
with Neely in the entertainments, he
says there can be no doubt thar in the
matter of unauthorized per diem allow
ances, personal expenses and warrants
cashcd and unaccounted for, he unlaw-
fully appropriated to his own use
money of the Cuban revenues. For
this. Mr.. Bristow says, he believes
Mr.. Rathbone should be required to
The connection between Neely and
the Neely Printing company of Mum
Gle, Ind, of which he was the proprie-
tor before he went to Cuba, Is then
sf
explained. The alleged sale of the
plant of this company to Cowan, Nee
ly's business associate, the report says,
was not bona fide transaction as 1t
Is not believed Cowan ever paid Nee
iy any money. of his pretended interest,