Evening star. [volume] (Washington, D.C.) 1854-1972, 1901-01-28
NEELY'S ALLEGATIONS
HIS STATEMENT PRONOUNCED ABSO-,
LUTELY UNWORTHY OF CREDENCE.
What Postmaster General Smith Says
on the Subject-The Journals
story.

Neelys signed statement, printed in the
New York Journal, in which he discusses
his connection with the Cuban postal
frauds, and duplicates by indirection GER
tain officials. was the talk of the Post Office
Department today.
The Journal sums up Neely's interviews
which occupies nearly page Of matter as
follows:
The republican statesmen nearest to
President Mckinley offered to get him off
with a sentence of one year II he would
plead guilty and be 'scapegoat for the ad-
ministrations crimes and blunders.
THE proofs of his innocence various
charges are to be found on the file of the
Secretary of War-uness the letters have
been deliberately destroyed.
IF, as has been charged, the packages
supposed 70 contain $s9,3O in stamps, which
were burned in Havana, really were filled
with waste paper the gigantic fraud was
done at Washington by other officials, and
not in Cuba by him.
mo actual shortage existed In his ac
counts and Fourth Assistant Postmaster
in order to destroy First Assistant Post
master General Perry Heath and get his
place. and boasted in Havana that he would
have Heath in Jail within forty-eight hours.
Capt. Burton, who announced the short
age in Neely's accounts, had made similar
charge concerning Treasurer of .the Island
Ladd for which he had to retract and apol-
ogize.
The administration dares not give him
trial by jury and an opportunity to cross
examine the witnesses against him, but is
rushing him to Cuba to be tried under The
old inquisitorial Spanish law, by which lie
will be convicted, guilty or innocent, and
sentenced to a term in a tropical prison,
where his early death is certain.
He IS being sacrificed, and will be the
sole sufferer, as is evidenced by the report
hat INIT tod at at q
served accommodations in Havana for the
period during which Director General Rath
bone of the Cuban postal department will
be tried, and is interesting himself directly
in Rathbone's defense. Maj. Rathbone con-
Quoted Hannas fight for the senatorship."
Following are some eXcerps from Neely's
statements made in the interview:
Had l wanted to steal, why did not do
1t when there was a chance for me to get
something worth the while? Once l could
have pocketed million dollars.
That printing office in Muncie, Ind,
which l am alleged to have fraudulently
transferred to other parties, is owned by
stock company. Not for four years, long
before l ever thought of going to Cuba,
have l owned more than one share of stock
in the corporation.
The man who says that stamps were not
destroyed, or who says that l said the pack
ages contained only brown paper, tells
damnable lie. Save for one or two PACK.
ages, they were in the original form. If
they contained only brown paper the fraud
was committed in Washington.
This explains the three principal charges
against me: The stamps were actually de-
stroyed. The payments on account of Rath
bones house and per diem were specifically
ordered from Washington The shortage
with which l am charged does not exist in
fact.
Il wish / had a chance at n trial before
an American jury, with the privilege of eX
amining and the power to subpoena Wit
nesses, books and papers,
What Post Office Officials Say.
1t is pointed out by the officials who are
familiar with the details of the case that
there is absolutely nothing in the statement
worthy Of credence. In fact, it is Claimed
that many of his assertions are pure fabri-
cations. This is instanced particularly in
his reference to the promotion, or rather
the increase in the salary, of Director Cen
eral Rathbone. In his statement he says
that he talked with the Postmaster General
concerning the matter, and IN the lattef >
order directing the increase no mention was
made of the per diem allowance of S. in
connection with his salary. one OF the
charges against Rathbone Is that he dreW
this per diem after the Post Office Depart
ment had expressly cut 1t off. The POST
master General in notifying Rathbone, un-
der date of June 10. 1899, of his increase IN
salary, specifically states that the per diem
of 81 is to cease. To quote from his letter:
with the compensation fixed at $500 the
per diem of s. would cease Before the
increase in salary went into effect Rath-
bone accepted the terms and the per diem
ceased, as the Postmaster General thought.
1t Is absolutely out Of the question. post
office officials say. for any fraud to exist
in the shipment of stamps. The check on
the department is thorough, and Neely's
statement that 'if the packages OF stamps
were filled with waste paper it was done at
Washington" is regarded as foolish.
Postmaster General Smith laughed heart
lily when a representative Of The Star
called his attention to the case this morn
ing.
''No, l do not care to discuss Nicely or
his statement. The government has made
out its case after careful. thorough and
conscientious investigation. 1t will stand
on it. 1 will say, however, that the state
ment is filled with inaccuracies and base
fabrications."
Fourth Assistant Postmaster General
Bristow, who is mentioned In the state
ment in connection with the investigation
of the Cuban postal frauds, when asked
concerning the matter this morning, said:
Whatever l might say has already been
said in my report to the Postmaster Cen
eral. I do not care to make any further
statement.
Secretary Perry s. Heath was not at re-
publican headquarters, and could not be
interviewed.