The sun., 1900-05-19
CUBAN POSTAL FRAUDS
Stated That Rathbone's Suspension
Will Be Permanent.
BLOCKED WOODS INQUIRY.
latter Filed With War Department
a Protest Against Continued OPP
position to Examination of
the Postal Vouchers.

New York. May 1S.-A dispatch to The
Sun from Washington says: Officers of
the administration are amazed at the
extent of the Cuban postal frauds, and
rs the evidence accumulates it is said to
strengthen the determination OF the pres
ident and the members of the cabinet
that everything possible shall be done To
bring to trial every man implicated, ei-
ther directly or indirectly, in the frauds.
1t is certain that the suspension of Iii
rector of Posts Rathbone will be perma-
nent. Fourth Assistant Postmaster
General Bristow goes to Cuba with full
authority as Mr.. Ilathbone,s superior to
relieve him from duty. He carries with
him full power to dismiss Mr.. Rathbonc
from the postal service, and officers here
say they will not be surprised if this is
done.
1t is not believed that Director Rath-
bone is at all connected with any of the
irregularities, but he is being severely
criticised for his failure To allow full i'll
vcStigatiun of all his vouchers by the
military authorities of Cuba. When the
postal service was established. Director
Rathbonc was placed in full control aud
was not subordinate to the military gov
Crnor except when he had to draw from
the governor sufficient funds To make UP
the deficit in the postal accounts caused
hy surplus of expenditures over the
regular receipts.
\ plan for this was agreed upon, the
treasurer Of the island issuing warrants
to Director Rathbone drawn upon the
funds in the general treasury. These
funds were largely made up from The
customs receipts of the island and during
General Brooke's administration in Cuba
the warrants were issued without much
complaint as to the concealment of the
vouchers showing expenditures.
General Woods Attitude.
When General Wood succeeded Gen.
eral Brooke, he at once took the position
that as the customs revenues We're being
used in part to support the postal serv-
ice the military authorities had a right
to examine all accounts OF the postal
service and to require Director Rathbone
to submit his vouchers in support of his
financial statements. These General
Wood had difficulty in obtaining, and he
complained to the war department re-
garding the matter.
Director Rathbone did not. according
to the officers, absolutely refuse to allow
any one to see the vouchers, but they
We're kept in the postoifice building, in
| such way as not to be accessible when
the military officers desired to inspect
them. y high officer of the government
said that whenever General Wood made
any effort in the direction of examining
| these vouchers he was met with a quiet
resistance which emphasized the conten-
| tion Of Director Rathbone that he was
not under the authority of the war de-
| partmCnt.
! This question came to Secretary Roots
attention when he was in Havana. and
after his return from Cuba General
Wood filed with the war department a
written protest against the continued op-
/ position to an examination Of these
vouchers. The matter went 50 far that
1 Director Rathbone was Informed that ii
might become necessary to have I'LL the
vouchers removed from the postulice
/ department in Havana to the military
/ headquarters.
General Wool's protest was sent t.
4 him t-r remark. and the matter was
/ pcnaiRg wien thc discovery If Norly's
alleged dcfalcation came to light.
1t is said ut the war department that
i was thought from the first discovery
that Nicely had accompliccs. There had
been inspections Of the accounts of both
Necly and the auditor The latter was
supposed to act as check on Nicely, this
being the system in the postal service.
The fact that the discovery was not
made sooner is attributed to an alleged
understanding between Neely and Reeves.
the auditor Colonel Burton has been
over the financial reports, but had moth.
ing to confirm any suspicious until he
discovered Neely's private book. This
showed such statements as convinced
him that something was wrong and led
to closer inspection that brought forth
evidence of fraud