Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-01-11
TOLD OF N[uyS plot
Witness in Postal Fraud Trial
Tells of Scheme to Rule
Havana.
Nicely Wanted to Secure Control
Of Cuban Revenues..Arrest
Stops Game.
Had Planned to Make Rathbone
Governor and Nicely Treas.
urer.-Burned Stamps.

urer.-Burned Stamps.
Havana, Jan. lin the trial of c. F
w. Nicely and others yesterday Reeve:
foot by which Rathbone was to be made
civil governor of Cuba, Nicely the treas.
urer and he (Reeves) auditor. Neel.
was declared to have said that when the
foregoing arrangement had been made
he would do business of this sort on
larger scale" This was after the burn
ing of the second lot Of surcharged
stamps.
The witness who related the scheme OF
Rathb bone and Nicely to get control oil
the government of Cuba for their mutu-
al profit was Reeves, the man appointed
chief of postal accounts and one of the
men who shared in the division OF the
plumber He afterwards returned $4,000
TO Governor General Wood and made a
full confession.
Reeves testified that he was original
ly appointed by order of the Washing
ton authorities, but that Rathbone had
appointed him chief of postal accounts
The fiscal asked him If he had had any
conversation with Nelly regarding the
burning of surcharged stamps, and
whether Nicely had suggested to Rath-
bone that money could be made there
by.
The witness replied that he had had
such a conversation; that Nicely had
stated that Ra.hbone refused to enter
into the transaction at first, but that
subsequently he agreed. Rathbone ap-
pointed the witness, Nicely. and Nor
field a commission to see the stamps
burned. Morfield did not know that
there was anything fraudulent connect
ed with the matter. Packets of stamps
were taken out of the vaults by the
three members of the commission. The
stamps We're not checked, except that
the amounts marked on each packet
were noted The stamps were placed in
a cart and taken to the electrozone
plant and burned. P. n. Bristow was
present as spectator.
A report on the burning Of the stamps
was made out by Nicely and signed by
the witness and Morfield. The report
stated that 10000 had been burned, and
that the packets included all the sur
charged stamps, except some struck
stamps.
Reeves said that in conversation with
Nicely afterwards the latter had said
that $4,000 less stamps had been burned
than the report stated and that there
was profit of $1,000 for each of them
Rathbone, Nelly. and Reeves. This oc-
Cured before the burning of the second
lot. All the complete packets of stamps
were not burned on the first occasion.
Rathbone paid off mortgage on his
property in Cincinnati with his share of
the spoils Subsequently, in CONVERSE
ton with Rathbone, the latter stated
that burning stamps was an easy way
to make money Rathbone therefore
knew that the burning wac fraudulent
Before the second lot was burned Nicely
told witness that If Rathhone became
civil governor of Cuba he would do bust
ness OF this sort on larger scale.
Reeves would then become auditor of
the island and Nicely treasurer.
The question of the check for $12, 900
was brought up. Reeves said that on
July 81 1899, Nicely deposited $4,000 to
the credit of the bureau Of finance in
error. instead of to the credit OF the
treasurer of the island. according to the
new system of accounts with the North
American Trust Company. Subsequent
ly Nicely caused warrant to be issued
to adjust the account, which warrant
Nicely paid in as cash to the credit of
his own bureau. and appropriated the
In regard to Rathbone's trip to the
United States in October. 1899, Reeves
said Rathbone had s1.5o0 in warrants,
but brought back 1878. which he deliv-
cred to him. The money got back to
Rathbone thru Nicely. Witness gave the
details of this transaction. in which an
containing $3.50 figured. Nicely
stated that he had given the money ito
the old man." who was hard up.
When Nicely left for tie United States
he gave witness $4,000 He heard rumors
that Nicely had stolen 100000. He told
of 1t. and the latter said he
did not believe It, Finally witness de-
livered $4,000 to Gen. Wood, declared
that Nicely had committed forgery. and
turned statess evidence
Apart from the documentary evidence.
Reeves testimony is most important for
the prosecution. His statements were
along the lines of the various indict-
ments on which the prosecution Is being
conducted. The lawyers for the defense
will endeavor to show that he is an un-
reliable witness and to throw discredit |
On his statements.