The age-herald., 1900-07-26
.BRISTOW'S REPORT ON
 THE FRAUDS IN CUBA
Rathbone Was in Collision With Nicely and Reeves
 and His Removal is Recommended

bone denied any Sucn conVerSallon WitH Rch Te report, continuing, says:
 Rich claims to be innocent, but he at least had knowledge of Neely's embezzle- ments long before he claims to have told Rathbone. Reeves confessed that Nicely paid him $4, 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 de- termine."
 December 21, 1898, when Rathbone was appointed Director-General of Posts, his salary was fixed at $4,000. At his request the Postmaster-Generala allowed per diem of $5 in addition. He claimed this was not sufficient, and June 19 the Postmaster-Gen- eral increased the salary to s6,5OO with noti- hcation tht with the increase the per diem would cease. July 8, Rathbone complained that the increase amounted to $675, and asked for an official residence This also was allowed.
 Rathbone's Salary S6,5OO December 19, the Postmaster-General off, cially fixed Rathbone's salary at $6,500, making it effective August l. But al- though the per diem was cut off Rathbone continued to draw it. When called upon by Colonel Burton for his authority for this allowance Rathbone submitted the letter, suppressing that part of it prohibiting the per diem In closing the discussion as to the per diem, the report says:
 Tt appears, therefore, that Director Gen eral Rathbone drew from August l, 1S99 to April 30, 1900, the sum of $1,365 as a per diem, which was unauthorized and that the drawing Of the same was fraudulent, and therefore recommend that he be required to reimburse the postal revenues of Cuba in that amount
 The bills rendered for furniture for the ohieial residence, the report says, contain many items such as charges for trunks, gloves, dog collar, overcoat, hats for coachman, boots for footman, shirts, col lars and cuffs for coachman, etc. Rathbone claimed that it was the custom or all countries that officials should be fur nlshed with such attendants and that they should be clothed at the expense of the public revenues. When the character of these purchases became known to the Post master General he wrote to Director Gen eral Rathbone as follows:
 Il nave today for the first time seen cer- tam or your bills as director general of posts which were brought here by Colonel Burton. Some of these bills are not only without authority or Justification, but are scahuaiouS and never should have been passed or paid The auditor, who is re- sponsiple to different department, was in- eAcusapie In allowing them and your &C., uen Tn presenting for allowance was gross " reprehensibie. Without waiting for A review and reconsideration of these hills bv a rightful audit, you should at once reim- purse 10 the island treasury the sums thus improperly paid"
 Made Numerous Onicial Trips
 Hathbone made numerous official trips. Tn April, 1899, he made a tour of inspec- lion, accompanied by his family and his expense account covered the entire ex- pense or his family. In May of the same year ne came to the United States and charged up as official expenses his ex- penses to Cincinnati and Hamilton, Ohio, where ne 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 were in New York. he charged $23O for eight days in New York while waiting for steamer. He stated that no part of his expense was for his family. The report says:
 T do not think 1t is reasonable to be- lieve that the director general expended $29.50 day for personal hotel expenses while in New York awaiting the sailing of the vessel for Havana, but I do believe that these expenses cover the entire hotel expenses of himself and family, and that they have been frauduently charged against the postal revenues of Cuba"
 The report also calls attention to a war rant for $500 drawn by Rathbone June 3O 1899, for which no accounting was made and another $500 warrant drawn in May of the same year. It says:
 From the records 1t appears that Rath- bone 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 unlawfully appropriating $1, 900 of the Cuban postal funds for his own use."
 No Vouchers Were Filed
 The report calls attention to many large hxy fb1 vouchers were filed, although they could have been easily obtained. For some mis- cellaneous aggregated as much as 1850. Such items as repairs, $250; freight $400, appear. Reeves explained that he passed such ac- counts because they had been allowed to the Director-General. The report does not credit the statement saying:
 "The evidence is too strong of collision between Nicely, Rathbone and Reeves"
 It says: General Rathbone has been en- gagged in the Government service many years and knows that such a method of presenting bills and expenditures are wholly unwarranted and bear the strongest evil dence of corruption. Therefore, for him to approve such accounts renders him equally guilty with Nicely. The total amount of these miscellaneous expenditures was $6, 29O. A part of this was probably legitimate, but a large part was doubtless fraudulent ex- penditure, for which Rathbone, Nicely and Reeves are equally responsible"
 With reference to the guilt of E. P. Thompson, the postmaster at Havana, the report explains that in September, 1S99 he issued four money orders in his own behalf for S100 each and deposited for them in lieu of cash due bill for $400 When the in- spection was made he took out this due bill, deposited cash from the remittances and after the inspection had been finished he withdrew the $400 and replaced his due bill.
 Thompson knew that his act was crime" says the report, land when he covered up his shortage and deceived the inspecting officers he plainly showed that he was aware he had seriously violated the law.
 Much in Excess of Salary
 The report finds that Rathbone's ex- penditures in the payment of debts and living expenses were much in excess of his salary, and that in September and October, 1899, within thirty days after the destruc- tion of the surcharge stamps, Rathbone paid over 8, 600 indebtedness. In discussing this subject the report says:
 x..sAt Ar-a-