Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1902-04-02
GET TEN YEARS EACH.
Nicely, RATH6ONE AND REEVES
CONVICTED IN HAVANA.
Each Is Also to Pay n Heavy Fine
History of the Crime for Which
the Three Men Were Tried - The
Punishment Is Severe.

The court in Havana, Cuba, sentenced
Rathbone. Nicely and Reeves, who were
found guilty Of embezzling postothce
funds. The sentence for each was as fol-
lows:
c. f. w. Nicely, ten years impt.son-
ment and to pay fine Of S56,T01.
w. II. Reeves, ten years imprisonment
and to pay a fine of $50, $40.
Estes G. Rathbone ten years imprison-
ment and to pay fine of S35,324.
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-
tected in the act of plundering the peO-
pie for whose interests the United States
had gone TO war with Spain.
Short in Cash Accounts.
Nicely was accused Of being in his cash
account $119,27S short and in his gen.
eral account $4,000 short. while he was
charged with selling Sl00,Sl3 worth Of
surcharged Cuban stamps which he
claimed to have destroyed
Rathbone 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 spells.
E. G. Rathbone was made director gen
eral of Cuban posts on Dec. Is. 1898, at
the beginning of American administra'
ton. He was Fourth Assistant Post
master General at Washington before his
appointment, and a capable man. The
postal committee commended him for
trained judgment in postal affairs, to-
gether with in iefatiga6e energy"
RAJ bone N Ide marked impression in
Havan His villa was magnificent fur.
nished. Tds horses and carriages were
maryels elegance. His carriage alone
cost $500, and the harness more than
$500. He entertained lavishly. and made
frequent voyages TO New York and
Washington.
Nicely was sent to Havana from Aiun
che, Ind, on the recommendation of Perry
s. Heath. Rathbone at once placed Nee
ly at the head of the postoffice finance
bureau, which sold stamps to all island
postmasters and received the money fol
them as well as for box rents.
Reeves came from the postofiice al
Washington. recommended as CLERK
who was capable of accounting. He was
made chief of the postal accounts, and
he was to eountersign all warrants issued
by the director general
Burning of the Stamps.
From the evidence submitted at the
trial it seems that the beginning OF tbc
fraud was in the destruction of the sur
charged stamps. When the United State.
assumed control of the Cuban govern
ment there were no postage stamps. Unit
ed States stamps, with the word Cuba
printed across them, We're hurried TO Ha
vana, and it was not until the fall o.
1890 that Cuban stamps of special design
were issued.
Then Nicely suggested to Rathbone tina
it would be cheaper to burn the old stocl
of stamps on hand than to ship them (,
Washington. Rathbone consented. ant
Nicely and Reeves. with much ostentati0l
| and at different times, burned packages
containing more than half a million dol
lars worth of stamps. Nicely was thei
credited on his books with the amount
Investigation later disclosed the fact tina
he had held out S100,S13 worth o,
stamps, thus enabling himself to poke
that much from the Cuban revenues anC
still keep his books balanced.
How Funds We're JuggIed.
Rathbone and Reeves shared in the di
vision of the plumber Other de ices were
worked, including duplicated salary war
rants. Funds were juggled in transfer
from one division to another. Rathbone's
personal and household expenses were
paid out of the Cuban revenues. III
spent 1852 on furniture for his official
residence" and S2,44S for plumbing ant
gas fixtures. He spent ON his horses. car
riages. coachmen and footmen 81, 449 He
drew $4,000 in double salary warrants
The total amount suspended in his &C
count reached S79.937.,
When the discovery Of the frauds could
no longer be concealed Nicely came &c
the United States. His arrest followed
at Rochester. n Y, on May s, 1900
Rathbone and Reeves were not arrest
ed fer some months afterwards.
During the trial it was brought out that
8 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 ar the
trial and it was largely by his testimony
that : II fbraa yvprp convicted