The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-07-26


made no accounting of the money.
When Neely was assigned to duty in
Hanava Jan. Z, 1883. his salary was 1,sOO.
The report says he was at this time
financially embarrassed. His account with
the Union National Bank Of Muncie was
frequently overdrawn. FEB. 6. 1sse.' the
report says, ''he sent deposit of 1920 to
ri7s Muncie bank. and I'm February and
March his additional deposits aggregated
81 $50. Thus Neely, with a salary Of $50
month. was able within three months 10
deposit S1,S59, conclusive proof that his
embeZzlement began in February, 1899. In
May he deposited sS37, June s775, July $685.
August s13125. October s20,250, and num-
ber OF deposits Of lesser amounts were
made afterward."
The report deals at considerable length
with the speculative ventures into which
Neely branched out i'm Cuba. They included
the West India Trading Company. in which
he invested s12.50O; brick plant at Ha-
vana, in which he invested $4,000, and some
mining schemes in South America. The
report says that c. M Rich, who was
brought 10 Havana as Neelys assistant,
told Rathbone in April that Nicely was
crooked" Rathbone denied any such con-
versation with Rich. The report. continu-
ing, says: "Rich claims to be innocent,
but he at least had knowledge of Neely's
embezzlements long before he claims to
have told Rathbone. Reeves confessed that
Neely paid him $500 for concealing the
fraud in the destruction of the stamps.
Both Rich and Reeves protest against any
criminal designs. How much credit should
be given to their statements it is difficult
to determine
RATHBONE'S SALARY AND PER DIEM
Dec. II, 1898. when Rathbone was ap-
pointed director general of posts. his salary
was fixed at $4,000 At his request the
postmaster general allowed him a per diem
cf s. in addition. He claimed this was
not sufficient and on June 10 the postmaster
general increased the salary TO $500. with
notification that with the increase the per
diem would cease. July Rathbone COM
planned that the increase amounted 10 only
500 AMI asked for an official residence.
This also was allowed. Dec. 19 the post
master general officially fixed Rathbone's
salary at $780, making it effective Aug. L.
But although the per diem was cut of
Rathbone continued to draw it. When
called on by Colonel Burton for his au-
thority for this allowance Rathbone sub
mtted the letter, suppressing that part of
it prohibiting the per diem. In closing
the discussion as to the per diem, the
report says: "It appears, therefore, that
Director General Rathbcne drew from Aug.
!, 1899, to April 90, 1900. the sum of 1866
as per diem which was unauthorized and
4 hot Of he
ulent, and therefore recommend that he
be required to reimburse the postal reve-
nues Of Cuba in that amount.
The bills rendered for furniture of the Of
fetal residence, The report says, contain
many items, sucn as charges for trunk,
gloves, dog collar. overcoat. hats for
coacbman, boots eo- footn,aE, shirts, col
lars and cuffs for coachman, etc. Rathbone
claimed that il was the custom of all coun-
tries that officials should be furnished with
such attendants, and that they should be
clothed at the expense of the public rev.
enues. When the character of these pur-
cnascs became known to the postmaster
general he wrote TO Director General Rath-
bone as follows: "I have to-day, for the
first time, seen certain OF your bills as
director general of posts. which were
trough. here by Colonel Burton. Some of
these bills are not only without authority
or Justification, but scandalous, an
never should have been passed or paid. The
auditor who is responsible to a different
department was inexcusable in allowing
them, and your action i'm presenting them
for allowance was grossly reprehensible
Without waiting for a review and recon-
v;<1e 1f&
you should at once reimburse to the island
treasury the sums thus improperly paid
FAMILY EXPENSES INCLUDED.
Rathbone made numerous official trips
In April 1899. he made a tour of inspec-
ton, accompanied by his family, and his
expense account covered the entire expense
of his family. In May of the same year he
came to the United States and charged up
official expenses his expenses to Cincin-
natl and Hamilton, O., where he went on
private business. The report says Rathbone
was aware at the time that these charges
were unauthorized and fraudulent" In
November, 1899. when his family was in
New York, he charged $3.50 for eight days
I'm New York while waiting for steamer
He stated that no part of his expense was
think it is reasonable TO believe that the
director general expended $3.50 day for
personal hotel expenses while in New York
awaiting the sailing of vessel for Ha-
vana, but do believe that these expenses
cover the entire hotel expenses of himself
and family, and that they have been fraud
ulently charged against the postal reve-
nues of Cuba"
The report also calls attention to war
rant for 500 drawn by Rathbone June so
1892 for which no accounting was made
and another $500 warrant drawn In May of
the same year. It says: From the rec
ords IL appears that Rathbone had drawn
two warrants TO himself in the sum of $500
each. received the money thereon, and
made no accounting whatever for the same
to the department of posts. There stands
against him, therefore. the charge of un-
lawfully appropriating $1,000 of the Cuban
postal funds for his own use
The report also calls attention to many
large expenses by Rathbone. for which no
vouchers were filed, although they could
have been easily obtained. For some
months miscellaneous expenses aggregated
as much as $3.50 Such items as repairs.
$50 freight $3.50 appear"
Reeves explained that he passed such ac-
counts because they had been allowed by
the director general. The report does not