The Savannah morning news., 1902-01-12
.RATHBONE GOT SWAG
SO REEVES TESTIFIES NEELY
TOLD HIM.
DID NOT DIVIDE WITH HIM.
LETTER FROM RATHBoNE TO
REEVES READ.

calls Reeves Attention to a Discre-
pancy of $500 in His Books and
Would Seem to Show That Rath-
bone Had No Desire TO Conceal
Fraud-Reeves Says Nicely Told
Him There Was Fraud Committed
in Burning the stamps-Otherwise
lie Would Not Have Known Slcl'
Was the Case.
Havana, Jan. 11.-At the opening of
to-day's hearing of the charges arising
from the Cuban postoftice frauds the
government asked for a further exam
ination of W. II. Reeves. He submit
ted several letters from Charles F. w.
Nicely, the governments purpose being
to show the intimacy which existed
between Nicely and Reeves.
In reply to a question of the court
Reeves said he did not get any portion
of the SIS, 200 from the stamp burning
incident. Reeves said Nicely told him
he had given it all TO Rathbone.
The cross examination of Reeves by
Moya and Mascaros, attorneys, did not
bring out any new evidence.
When cross-examined by Rathbones
attorney, Reeves said he was appoint
ed by Perry S Heath, the First Assist
ant Postmaster General.
The contention of the government
to-day to prove intimacy between
Reeves. Rathbone and Nicely by in
Producing correspondence between
them brought out a letter from Rath-
bone to Reeves. which the government
had in its possession but failed to IN
troducc Yesterday. Rathbone's counsel
stated that the letter itself shows that
Rathbone was not DESTROYS of conceal
ing fraud The letter was written
while Reeves was i'll in FLORIDA, III
February. 1900. Rathbone wrote that
Col Buttons examination OF reeves
books showed a discrepancy of 5000.
Col. Burton thought that the error lay
with the bank and suggested that the
matter be left open until the next IN
vestigation, but Rathbone insisted up
on finding the discrepancy and waltlns
until Reeves returned to explain
Reeves admitted having received the
letter and said he thought it was an
honest expression from Rathbone.
While under cross examination by
counsel for Nicely and Rathbone'
Reeves look advantage VI HIS PNS'N'Ot-
as defendant, refusing to answer sew
eral questions. The chief points brought
out were the facts that special agent
from the United States examined
Reeves accounts in May. 1899, and re
ported them to be correct. Reeves ad-
r1itted that if they had examined the,
accounts correctly frauds would have
been discovered after July, 1899. He
said that Rathbone had not authority
to order an inspection of his accounts,
this step being only within the juris-
diction of Col. Burton. under orders
from the military government. Reeves
said that after his arrest Rathbone
suggested that all three get together
and they could fool the government.
He said that as auditor he had au-
thority to allow certain accounts with
out vouchers when the accounts were
approved by Rathbone. The defense
contends that the law forbids this.
Reeves stated that no orders had been
issued to audit the monthly accounts
of the postmaster of the island. He did
not recognize the alleged order shown
by the defense, and he said that it
never was posted on the postofflce bull
letin board, as other orders were.
NeelS's counsel sharply cross-eXam-
ined the witness. Reeves recalled the
stamp burning. and said that the pack
ages were sealed, though he was not
sure whether with the Washington seal
or with another He took down the
marked on the outside, and
the sum, he said, corresponded with
the sum destroyed, $31O,0 900. He knew,
he said, that fraud was intended, but
he did not know exactly how 1t was
to be committed. He did not observe
any fraud. He said that Nicely told
him there was one, and he knew there
was one from the investigating COM
report which stated that the
number of stamps sent from Washing
ton did not correspond with the stamps
accounted for at Havana. On the sec
ond burning the greater part of the
stamps had a seal which he thought
was the Washington seal. Nicely,
Reeves said, kept the stamp books,
and his receipt stubs show the amount
distributed throughout the island.
Reeves did not keep the stamp ac-
count.
-s-4-s