Hot Springs weekly star. (Hot Springs, S.D.) 1892-1917, 1902-04-04
[ GET TEN YEARS EACH.
NELLY. RArHsoNe AND REEVES
CONVICTED IN HAVANA.

CONVICTED IN HAVANA.
Each 10 Also to Pay Heavy Fine
History Of the Crime for Which
the Three Men Were Tried = The
Punishment IL Severe.
The court in Havana, Cuba, sentenced
Rathbone, Neely and Reeves. who were
found guilty of embezzling pestothce
funds, The sentence for each was as fol-
lows:
G. f. w. Neely, ten years imprison-
ment and to pay fine of $$sI6, ,7O1.
w. Fl. Reeves, ten years. imprisonment
and to pay fine of $35, ,516.
Estes G. Rathbone. ten years ;mprison-
ment and to pay a fine of $35,324.
The three men were chosen for their
respective positions in the Cuban post
Office department for their special fitness
and supposed personal worth. They took
advantage of their position and were de-
tccted in the act of plundering the peO-
pie for whose interests the United States
had gone to war with Spain.
Short in Cash Accounts.
Neely was accused of being in his cash
account $119.2.S short and in his gen
eral account 100000 short, while he was
charged with selling $100,S13 worth Of
Surcharged Cuban stamps which he
claimed to have destroyed.
R6thbone was accused of converting to
his own use money belonging to the reve-
nues of the Cuban postal department.
Reeves was also charged with sharing in
the division of the spoils.
n. q. Rathbone was made director gem
eral of Cuban posts ON Dec. %. 1898. at
the beginning of American administra.
tion. He was Fourth Assistant Post
master General at Washington before his
appointments and capable man. The
postal committee commended him for
trained Judgment in postal affairs. to.
gether with indefatigable energy"
Rathbone made Il marked impression in
Havana. His villa was magniicently fur
nished. His horses and carriages were
marvels of elegance. His carriage alone
cost $50. and the harness more than
$500. He entertained lavishly. and nlade
frequent voyages to New York and
Washington.
Nicely was sent to Havana from Mum
Gle, Ind, on the Recommendation of Perry
). Heath. Rathbone at once placed Nee.
ly ut the head of the pOstofice finance
bureau, which sold stamps to all island
pOstmasters and received the money foI
them as we'll as for box rents.
y Reeves came from the postofiicc al
Washington, recommended as 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.
Burning of the Stamps.
From the evidence submitted ut the
trial it seems that the beginning OF the
fraud was in the destruction of the sur
charged stamps. When the United Statea
assumed control of the Cuban govern.
ment there were no postage stamps. Cnit-
ed States stamps. with the word "Cuba"
printed across them. were hurried to Tia
vana, and it was not until the fail OF
1899 that Cuban stamps of special design
We're issued.
Then Neely suggested to Rathbone that
1t would be cheaper to burn the old stock
of stamps on hand than to ship them to
Washington. Rathbone consented and
Nicely and Reeves. with much ostentation
and at different times. burned packages
containing more than half n million dol
lars worth of stamps. Nicely was then
credited on his books with the amount.
Investigation later disclosed the fact that
he had held out" S109.S13 worth of
stamps, thus enabling himself to pocket
that much from the Cuban revenues and
still keep his books balanced.
How Funds We're Jusxled.
Rathbone and Reeves shared in the di-
vision of the plunder. Other devices we're
worked. including duplicated salary rar.
rants. Funds were juggled in transfer
from one division to another. Rathbone's
personal and household expenses were
paid out of the Cuban revenues. He
spent $3,5S2 on furniture for his ''otficial
residence" and $2.448 for plumbing and
gas fixtures. He spent on his horses, car.
riages, coachmen and foetmen $4,449. He
drew $4,000 in double salary warrants.
The total amount suspended in his &c.
count reached $79.937.
When the discovery of the frauds could
no longer be concealed Neeiy came to
the United States. His arrest followed
ut Rochester. N. Y. ON May 8, 1900.
Rathbone and Reeves were not arrest.
ed for some months afterwards.
During the trial it was brought out that
a campaign was on foot for the appoint
ment of Rathbone as civil governor Of
Cuba, while Nicely was to be named as
treasurer and Reeves auditor.
Reeves turned States evidence at the
trial and it was largely by his testimony
that all three We're convicted.