Evening star. [volume] (Washington, D.C.) 1854-1972, 1902-01-11
LOOKS BAD FOR NEELY
STRONG EVIDENCE PRODUCED AT
THE TRIAL YESTERDAY.
w, HI. Reeves Testified as to the De-
tails of the Huge Stamp
Frauds.

dispatch from Havana yesterday says:
When the trials of the cases arising from
the Cuban post office frauds were resumed
in the Audencia court today, after having
been adjourned Tuesday last on account of
the illness of counsel for Charles F. w.
Nicely, W. H. Reeves, one of the defend
ants, was again called to the stand and tes-
titled regarding the surcharged stamp burn
ing incident
He said the stamps were not counted, and
that Nicely told him Estes G. Rathbone &C
quiesced in the whole matter.
The government has finished the exam
nation of Reeves and tomorrow he will be
cross-examined by counsel for Nicely and
Rathbone 1t was evident throughout
Reeves testimony that the charge of the
government against all the defendants is
based on Reeves statements, for the fiscal
conducted his examination, question by
question: from a typewriter copy Of the
accusation, and Reeves testimony substan-
tiated the conclusions drawn in the accu-
Sation.
him chief postal accountant, but, that he
had originally been appointed to this posi-
ton from Washington. He said that he had
a conversation with Nicely about the de-
struction of the stamps; that Nicely told
him Rathbone was willing to do business,
and that the stamps had been burned at
the suggestion Of Nicely. Reeves, MARRIED.
and Nicely were appointed a commission.
MARRIED. did not know about the intended
fraud. He figured up the amount of the
value and marked each package of stamps,
amounting to a total of $4,000
Reeves testified that Nicely made up
declaration, and that some days afterward
he (Neely) and MARRIED. signed it. Rath-
bone, he said, ordered him to credit the
amount on the books.
Here Senior Lanuza called attention to
Reeves statement in Assistant Postmaster
Bristows report that Reeves did not know
fraud had been committed when he made
the credit in the books. Reeves refused to
recognize the printed statement as his
Reeves said that before burning the last
surcharged stamps, amounting to $4,000,
Nicely told him that the amount credited for
the first burning was wrong, and that there
was $4,000 to be divided up among him,
Nicely and Rathhone Reeves testified that
Nicely told him that Rathbone had paid off
mortgage in Cincinnati with this money.
Shortly after this Reeves said that Rath-
bone, in referring to the burning of the
stamps, said that it was an easy way to
make money. He also said that Nicely told
him that Rathbone would be civil governor
of Cuba, and that they would benefit
thereby, because Nicely would be treasurer
of the island and Reeves auditor Reeves
also testified that Nicely had credited $4,000
in his own department in changing ac-
counts to the North American Trust Com
pany, and that he (Neely) had appropriated
his amount.
Regarding Rathbofie's trip to the United
States in October, 1899, Reeves said that
81 500 had been drawn for expenses, and
that Rathbone returned him 1913. He said
that he thought Nicely gave Rathbone $3.50
of this amount, and that Nelly said that
Rathbone was hard up and that he would
return 1t when he got an Increase Of salary
When the question Of daily expense allow
ance came up Reeves testified that he told
Rathbone that in the absence of any in
structions disseminating this allowance he
should continue it when Nicely went to the
United States. Reeves said further that
just before his arrest Nicely left an envelope
containing $4,000 upon his (ReevesO desk,
telling him to fix up the accounts Reeves
said he afterward gave this money to Gen.
WOOD, telling him that Nicely had been
stealing.