Jasper County Democrat, Volume 4, Number 51, Rensselaer, Jasper County, 29 March 1902 — GET TEN YEARS EACH. [ARTICLE]

GET TEN YEARS EACH.

NEELY, RATHBONE AND REEVES CONVICTED IN HAVANA. Each Is "Also to Pay a Heavy Fine— Hiator> of the Crime for Which the Three Men Were Tried The Punishment Xs Severe. The court in Havana, Cuba, sentenced Rathbone, Neely and Reeves, who were found guilty of embezzling postoffice funds. The sentence for each was as follows: C. F. W. Neely, ten years’ imprisonment and to pay a fine of $56,701. W. H. Reeves, ten years’ imprisonment and to pay a fine of $35,516. Estes G. Rathbone, ten years’ imprisonment and to pay a fine of $35,324. The three men were chosen for their respective positions in the Cuban postoffice department 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. Short in Cash Accounts. Neely was accused of being in his cash account $119,278 short and in his general account $30,G00 short, while he was charged with selling $100,813 worth of surcharged Cuban stamps which be claimed to have destroyed. Rathbone was accused of converting to his own use money belonging tQ the revenues of the Cuban postal department. Reeves was also charged with sharing in the division of the spoils. E. G. Rathbone was made director general of Cuban posts on Dec. 28, 1898, at the beginning of American administration. He was Fourth Assistant Postmaster General at Washington before his appointment, and a capable man. The postal committee commended him for “trained judgment iu postal affairs, together with indefatigable energy.” Rathbone made a marked impression in Havana. His villa was magnificently furnished. His horses and carriages were marvels of elegance. His carriage alone cost SBSO, and the harness more than S3OO. He entertained lavishly, and made frequent voyages to New York and Washington. Neely was sent to Havana from Muncie, Ind., on the recommendation of Perry S. Heath. Rathbone at once placed Neely at the head of the postoffice finance bureau, which sold stamps to all island postmasters and received the money for them as well 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. Burning of the Stamps. From the evidence submitted at the trial it seems that the beginning of the fraud was in the destruction of the surcharged stamps. When the United States assumed control of the Cuban government there were no postage stamps. United States stamps, with the word “Cuba” printed across them, were hurried to Havana, and it was not until the fall of 1599 that Cuban stamps of special design were issued. Then Neely suggested to Rathbone that it would be-cheaper to burn the old stock of stamps on hand than to ship them to Washington. Rathbone consented, and Neely and Reeves, with much ostentation and at different times, burned packages containing more than half a million dollars’ worth of stamps. Neely was then credited on his books with the amount. Investigation later disclosed the fact that he had “held out” $100,813 worth of stamps, thus enabling himself to pocket that much from the Cuban revenues and still keep his books balanced. How Funds Were Juggled. Rathbone and Reeves shared in the division of the plunder. Other devices were worked, including duplicated salary warrants. 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 $3,582 on furniture for his “official residence” and $2,448 for plumbing and gas fixtures. He spent on his horses, carriages, coachmen and footmen $4,449. He drew $9,000 in double salary warrants.' The total amount suspended in his account reached $70,937. When the discovery of the frauds could no longer be concealed Neely came to the United States. His arrest followed at Rochester, N. Y., on May 8, 1900. Rathbone and Reeves were not arrested for some* months afterwards. During the trial it was brought out that a campaign was on foot for the appointment of Rathbone as civil governor of Cuba, while Neely was to be named as treasurer and Reeves auditor. Reeves turned State's evidence at the trial and It was largely by his testimony that all three were convicted.