Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-03-25
c. v. Nelly SENTENCED
Cuban Postoffice Embezzler Civ.
en- Ten Years Imprisonment
and Heavy Fine.
Rathbone and Reeves Also Given
Penitentiary Sentences Of
Ten Years.
Neely's Fine is Fixed at $56.7Ol
History OF the Embezzle.
ment.

Havana, March 25.-The trial before
| the Audencia court, of the cases arising
from the embezzlement of Cuban postal
funds, resulted in the following sen
| tences:
C. +. w. Nicely, ten years imprison-
ment and to pay fine of s56,701.
w. H. Reeves, ten years imprison-
ment and to pay fine of $35,516.
Estes G. Rathbone, ten years impris-
cnment and to pay fine of s35,324.
| Thus ends the last chapter in the
story of the only blot on the record of
/ American home rule in Cuba. The three
men were chosen for their respective
positions in the Cuban postoffice de-
| partment for their special fitness and
supposed personal worth. They took
advantage of their position and were
detected in the act of plundering the
people for whose interests the United
States had gone to war with Spain.
| Nicely was accused of being in his
cash account $119,27S short and in his
general account S3O,600 short, while he
was charged with selling $1o0,S13
worth of surcharged Cuban stamps
which he claimed to have destroyed.
| Rathbone was accused of converting
| to his own use money belonging to the
revenues of the Cuban postal depart
ment. Reeves was also charged with
sharing in the division of the spells.
| e. G. Rathbone was made director
general of Cuban posts on Dec. %, 1898.
at the beginning of the American adj
ministration. He was Fourth Assis-
tant Postmaster General at Washing
ton before his appointment, and cap
able man. The postal committee COM
mended him for trained Judgment in
postal affairs, together with indefati-
gable energy"
Rathbone made a marked impression
| in Havana His villa was magnificent
II y furnished. His horses and carriages
were marvels of elegance. His carriage
alone cost $3.50, and the harness more
than $500. He entertained lavishly,
and made frequent voyages to New
York and Washington.
Nicely was sent to Havana from
Muncie, Ind, on the recommendation
bone that Nicely would make a grand
confidential man. Rathbone at once
placed Nicely at the head of the post
office finance bureau, which sold
stamps to all island postmasters and
received the money for them as we'll as
for box rents.
Reeves came from the postoffice at
Washington, recommended as a clerk
who was capable of accounting. He
was made chief of the postal accounts,
and he was to countersign all warrants
issued by the director general.
From the evidence submitted at the
trial it seems that the beginning of the
fraud was in the destruction of the sur
charged stamps. When the United
States assumed control of the Cuban
government there We're no postage
stamps. United States stamps. with
the word Cuba" printed across them,
were hurried to Havana, and 1t was not
until the fall of 1890 that Cuban stamps
of special resign were issued
Then Nicely suggested to Rathbone
that it would be cheaper to burn the old
stock of stamps on hand than to ship
them to Washington. Rathbone con-
sented, and Nicely and Reeves, with
much ostentation and at different
times, burned packages containing
more than half million dollars worth
CT stamps. Neelyrwas then credited on
his books with the amount. Inyestiga-
ton later disclosed the fact that he had
held out" $100.S13 worth of stamps,
thus enabling himself to pocket that
much from the Cuban revenues and
still keep his books balanced.
Rathbone and Reeves shared in the
division of the plumber. Other devices
were worked, including duplicated SAL
airy warrants. Funds were juggled in
transfer from one division to another.
Rathbone's personal and household ex
penses were paid out of the Cuban rev.
enues He spent s3,5S2 on furniture
for his official residence" and s2,44S for
plumbing and gas fixtures. He spent
or his horses, carriages, coachmen and
footmen $4,449. He drew $4,000 IN
amount expended in his account
reached s79937
When the discovery of the frauds
could no longer be concealed Nicely
came to the United States. His arrest
followed at Rochester N. Y, on May s..
1900. Rathbone and Reeves were not
arrested for some months afterwards.
Nicely resisted extradition, and 1t was
not until his lawyers had fought the
case thru the United States supreme
court that the authorities We're able to
take him to Havana for trial. The SUI
preme courts opinion was handed down
on Jan. IA, 1901, and was to the effect
that Cuba was a foreign country, altho
controlled by the troops of the United
States.
During the trial 1t was brought out
that campaign was on foot for the
appointment of Rathbone as civil gov
eruor of Cuba. while Nelly was to be
named as treasurer and Reeves audi
tor.
Reeves turned states evidence at the
trial and 1t was largely by his testi-
mony that all three We're convicted
HARVARD is GIVEN $450,00o.