The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1900-05-11
NEELEY'S %DEFALCATI0N.
THE AMOUNT so FAR ASCERTAINEDI
REACHES $4,000.
QUESTION OF RESPONSIBILITY.
The Cabinet Decides that Our Govern
ment is Responsible to Cuba for the
Amount of n EmbezzIement-Nee-
ley to be Returned TO Havana for
T~rial-Other Parties II the Service
Under Suspicion How Medley Sc
cured the Funds.

Shoc SuSplcIOu HOW Scc!ey Sc
cured the Funds.
Washington, May s.-The postoffice
department has a report rom Agents
Seybolt and Neal as to the amount of
in the possession of Charles
w. Medley, the chief of the bureau of
finance for the postal department in
Cuba, on April 23rd. At that time, ac-|
cording to these reports he apparently
accounted for all sums due the gov
eminent and it is sal by postoffice Of
fcials that IL Medley embezzled postal
funds he either juggued the figures and
made false entries in his books, or
took the money Immediately after the
balance was struck. According to the,
figures at command here, however,
there is an apparent discrepancy of
SCI, 165 between the amount of postal
money order funds as given by Mr..
Medley and the amount due the post
office department. The report states
that he had On April 23rd $144, 997, while
the books of the postoffice department.
here indicate that he should have had
$2O6, 612.
Director of Posts Rathbone, on April
10Th, directed that a statement be pre-
pared of the money order and postal
of the bureau of finance up to-
the 18th of April. On April 23rd heI
directed that a further examination
be made and the resulting report in
dictated that Neeley'S accounts were
correct and were so certified by the
agents.
Since the establishment of the money
order system between the United States
and Cuba under the new regime there
has been at all timeS a balance due
the postoffice department on account
of money order funds. The last remit
lance to Washington was on April
LIST, $50, 900, and there is now due ap-I
proXimately 1924, 900. 1t is said that
these are the only funds permitted tot
accumulate in the Cuban office, as all
other postal are transmitted
to the military authorities soon after
their receipt by the postal bureau of
finance.
Postmaster General Smith was asked
today as to the status of the postal sys-I
tenn of Cuba. He said:
The Cuban postal department is
running on an Independent basis. Cen
eral Rathbone has been directing af-I
fairs there. He makes appointments
and is the general administrative au-
thority. The revenues from stamps,
ETC., are transmitted to the chief of
the bureau of nance n by him
passed to the military authorities who
have general charge of the finance of
the island, such as the collection of the
customs of the stands. The revenue
services are for the benefit of the peo-I
pie of Cuba. If there should be a de-
felt in postal revenues, it would be
made up from other moneys collected
on the island. All postal officials are
nai6 ont of the rpVan11aS of the island
1t was stated by a department Off
cial today hat for some months past
there has been considerable friction
between General Wood and Director
Rathbone as to the administration of
the postal service. General Wood, it is
said, in some instances desired to make
appointments in the service, which
Director Rathbone considered an in
fringement of his rights.
It today's cabinet session, the ques-
ton arose as to whether the United
States or Cuba was responsible for the
amount of the de~falcation. 1t seemed
to be the opinion of all the members
present tina as Medley was appointed
by the United States and that in adj
ministering the affairs of the island,
this government is acting, in a sense,
as a trustee, it, therefore, is response
BILE for the shortage, and can proceed
against Neeley's bondsmen for the
dlIlOuIll 1iNOlNSo. IL was III III
settled, too, that Neeley would be
taken back to Havana for trial before
a civil tribunal. 1t is expected that
the prisoners counsel will contest any
effort to return him to Havana, but it
is the opinion OF the attorney general
that it can and should be done.
Havana, May S.-The postal frauds
have been the principal topic of con-
vrsation in Havana today, although
as yet the papers have scarcely alluded
to the matter. The department of posts
admits the shortage of SIS, 900, but fur
Their investigation has brought. to light
the fact that in July last year the re-
ceipts showed a falling off of about
| $12, 900 from the average of the months
| previous and that this shortage has
| beer kept up ever since. 1t appears
that, about that time, Director OF
| Posts Rathbone gave orders for the
destruction of SAIL, 900 worth of sur
charge stamps, OF account of the tissue
| of a new stamp. This work of destruc-
| ton was left in he and Of Charles
F. w. Neeley and his assistants, but
it is now believed hat none of those
stamps were destroyed, the theory
being that they were sent out with the
new stamps.
The Havana receipts amounted tC
about s13, 900 a month, according to the
books, but the other offices of the
/ lSlanO SUON Ohly So,VVV VI 21-VVV
amounts palpably absurd. 1t is aston.
ishing thai the shortage was not dis
covered before because the receipts a
Santiago or Matanzas should amount
to nearly $4,000.
Absolute proof that something ha:
been going wrong is shown by the fac
tina Auditor Barrie reports the receipt!
of the island for the first five lays Of
May as a~ggregating $4,000. Should thi:
average be continued it would meal
a total of more tina $4,000 for tn
month.
Thai Others than Medley are involved
is implicitly believed, although the ev
idence as yet is not sufficient to JUST
fly their arrest. Nevertheless, shoul'
certain persons attempt to leave tn
island, they would be taken int Gus
tody.
Medley has made investments her
Inc in other parts Of the island, haV1nI
as a partner a postal employe.
Governor General Wood has ordere
that all property standing in h nam
of Medley in Cuba should be placed un