V OL LX....X°19,61L
HOPES AND FEARS ALTERNATE.
CONFLICTING REPORTS SENT OVT REGARDING SAFETY
OF THE LEGATIOXS AT PEKIXG.
BART'S DEATH ANNOUNCED— RUSES TO GAIN TIME
rprctcr of the British Legation at Peking who escaped to New*
that when he left the city most of the foreigners were dead Sir
•art. lie added, died on July L\
iirces, alleging that the legations at Peking
capitals.' Dates of the dispatches varied from July
credence was placed in the messages by officials.
'•■'-■ ''''•••■ ' ceived from the Commander of the Brooklyn, at
'eking by Minister Conger on July 4. which said
jrave danger of massacre
Ir - Choal United State- Ambassador to
until nite advices regarding the fate the legation? had
mediation would be considered.
the native city ofTien-Tsin show that great damage
I] iev General Dorward warmly commended
ps.
STHAT MOST ARE DEAD
SSAGI ; " BRITISH LEGA
TION'S IXTERPRFI
[CepyrUrtJt: l? 00: By The New-Tork Tribune 1
[bt rxnin to the tribune:.]
London. July 2«">. G a. m.— The most sensational
new? from China this morning is a message
?rCTT , -The Daily Mail's" Shanghai correspond
ent stating that the Chinese interpreter and
writer at the British Legation, who escaped
r~ nTn Peking to New-Chwang. declares that
when he left Peking the majority nf the people
in the Legation were dead, and that the condi
tion of the living was hopeless. He states that
Fir P.obert Hart died <^n July '1.
There is no indication given nf the date upon
which the interpreter left Peking.
The Standard's" Shanghai correspondent tele
graphs an extract from a letter written by a high
r-hinese official at Peking, on July P, in which the
legations were said to be uninjured on that
cay. although only T.OO persons were left alive.
"The Morning Post's" Che-Foo correspondent
Btates a. native messenger leaving Peking o n
July 1O reports that legations still survived.
but were in need of prompt aid.
The Shanghai correspondent of "The Express
states that aft<>r correspondence with the Gov
ernor of Shan-Tune:. Li Hung •hang announced
that the Government would give to the Min
isters a safe convoy to Tien-Tsin on condition
that hostilities should cease, the advance on
•Pewng be abandon^. 1 , and that all matters in dis
pute should be made the mibject of friendly
negotiations.
-• -. egraph's" Canton correspondent atatea
ed, an
... . . ; . -.r, be obtained with
•.-.a-. and calling upon the
attack
■
• ry Is taken
- mismanagem
T. N F.
WITHHOLDING JUDGMENT.
OFFICIALS AWAIT CONFIRMA
TION FROM PEKING.
-«rrhi: ion": By Tfc* New-Tor* Tribune]
IT CAHLE TO THE TRIP.I~^"F.. ]
.tuly 36 1 a. m.— British officials are
less [Kjsitiv« than they were respecting the un
trnstworthlnes* of Chinese edicts and the credul
ity of the American State Department. They
ar* not convinced that the legations had
escaped destruction at the alleged date of Mr.
Cor.g-er's dispatch, but they are Impressed with
the cumulative effect of many statements of
runnera from Peking that the bombardment was
sti'.l in progress several days after the time
when the- massacre had been reported.
k decisive proof that Mr. Conger's message
cf July 18 was a direct reply to Secretary Hay*
Ciipatcn may be lacking, but the probabilities
in favor of that ■nnmptlpn have been Increased
by the publication of his dispatch of July 4.
which was not in cipher, since the inference Is
strong that h * used th* code book when di
rected to do so by Mr. Hay. Moreover, the
couriers and Chinese witnesses who have
reached The consulates and been questioned by
press correspondents state that the fight had
not ended on July 10. or even on July 14. When
fall allowance has bee* made, for Chinese partle
asd mendacity, there is a margin for reason
able dcubt respecting the fate of the legations,
although there is a strong probability that
even under the most favorable conditions of de-
Vr.c only a remnant of the garrison has sur
vhred. An argument persistently used by vet
erans of the China service, that the legations
could not have held their ground against a per
■fstent attack, has been impaired by direct
Proof that they did maintain a successful de
fence for a fortnight, and by indirect evidence
that fig-fating was in progress a week later.
Dispatches received yesterday offered an inex
trJeaMe maze of contradictions, and the officials
*sl diplomatists declined to express any opinion
and were- content to wait for something au
thentic.
Two facts are conspicuous in the dispatches
first, that an advance irom Ti-n-Tsin has been
rendered practicable by a drouth during a sea
«on when a heavy rainfall usually occurs, and
s^wind, that the allied contingents are not co
operating to the best advantage, and that there
18 no unity of direction.
The Chinese Legation here is most persistent
*nd emphatic in declaring that the intervention
°* Prince "hing's troops saved the legations
'■rom Tuan'e attacks, and ultimately delivered
the bti!k of the survivors under fire, but this has
>« to be proved by evidence untainted with sus
picion. I- N. F.
■ MAT BOMBARD COAST CITIES.
London, July 26.— "The Daily Express" has
'-*•« following from St. Petersburg::
Admiral Skrydeloff, commanding: the Russian
fequic- in Chinese waters, has received precise
• instructions to bombard the Chinese coast towns
taunediately on receipt of confirmation of the
report of the massacre at Peking.
POLAND WATER! POLAND WATER!
toe its grsat medicinal properties.—
AMERICAN VALOR PRAISED
GEXERAL DORWARD WARMLY COM
MENT'S THE WORK OP THE NINTH.
Tsin. July IH. via Che-Foo, July 124. —
General Drrward. the British commander, has
sent to the American rimraand»ts a Setter in
which he says
sire to express the high appreciation of
rltteh troop? of the honor done them in
serving alongside of their comrades of the
American Army, and of tho high honor ac
me ir. having then; und.-r my command.
I blame myself for the mistake made in taking
their position by the I>t h Regiment, not remem
bering that troops tre=h to the scene of action
and hurried forward in the excitement of at
tack were likely to lose their way. Still, the
position they took and gallantly stuck to all
day undoubtedly prevented a large body of the
from turning thr- right of the ar
'flirting serious loss on the French
and Japanese.
General Dorward al.»o expressed sympathy
with the Americans- in the 'lose of Colonel Lis
cum. commander of the regiment, and Captain
Davis, of the Marin° Corp?. He commended
I nant Bmedley Butler and Lieutenant
Henry Leonard, of the Marine Corps, and Lieu
tenant Louis Lawton. of the regiment, and
praised Lieutenant-Colonel Coolidge for his sk;i
ful withdrawal of the regiment.
Chinamen from the walled city describe a
if terror begun by the Boxers before the
city fell. The Boxers killed all Chinese who
had been In th>- employ of Europeans, holding
a daily inquisition. They decapitated even those
suspected of friendship for foreigners or of
adopting foreign customs. The mere wearing
of narrow pleeves was deemed an offence Justi
fying the death of the offender and the eonfisca
t his property.
It is now believe. l that the regular troops and
the Boxers are hostile to on" another. th« troops
ged because the Boxers drew them
Into a d.sastrous fight.
DISTRUST OF THE CHINESE.
BELIEF THAT REPORTS ARE RISES TO
GAIN TIME FOR DEFENCE.
fßj v * Ap«o»tated Pp»>is.)
London. July 26.— Mr. Conger's letter, th» sub
stance of which has been transmitted to the
United States Secretary of the Navy through
Captain Thomas, of th« United States cruiser
Brooklyn, has increased the belief in London
that there is no hope for the foreign legations
in P»kin;r, and that the elaborate fabric of dis
patches which the Chines^ are building to per
suade the civilized world that the Ministers are
still alive is only intended to enable them to
gain time To complete preparations for warfare.
The Shanghai <orr«-«pon<]<Mif of "The ilalTy
Mail «»«.ti» that a < hlnaman who -n-nn em
ployed at the Mrlil-.li Iteration an a writer
and Interpreter hn« eweaped from Peking
to lew-Ckwaat. and thai he declare* that, nt
the time he left Peking. moat of the mem
bers of the lecatlonn were dead, and the
condition of the other* wan hopelenn. He
•««>* that Sir Robert Hart. Director of rTTl
ne«e Imperial Maritime * 'untoniA, died on
11 1 v " * The correspondent sroes on to »ny:
No other dates are given in the message from
New-Chwang. The leading Chinese newspaper
here published yesterday a dispatch declaring
that it was all over with th" members of the
legations.
The president of a minor board at Peking
wrote to a relative in Shanghai, under date of
July 0, saying:
Th - foreign legations are still uncaptured,
but owing to the daily fighting it is reported
that only about 300 persons are left alive in
the legations, and if there is any delay in the
arrival of the relief force ! fear that none will
be left to receive it.
This letter is regarded at Shanghai as au
thentic. Strangely enough, it says nothing of
any assistance to the legations by Prince Ching
or General Tung Lu.
CHINA PREPARING TO RESIST
"While these brief side lights as to the fate of
the Europeans leave little ground for hope,
Shanghai sends a batch of reports indicative of
preparations for hostilities on the part of the
Chinese. It is alleged that the Tang-Tse vice
roys hate sent deputies to Shanghai to inquire
as to the prospect of raising a foreign loaji,
ostensibly to pursue military operations against
the Boxers, whose movement is extending rap-
Idly southward with constantly growing strength
and has reached a point wheri- the provinces of
Shan-Tung, Ho-Nan and Shen-Si m*et. leaving
behind it a trail of burned missions and mur
dered Christians
BlmultMltOUatj then» is a movement northward
of Southern Chinese troops to Join the main
army gathered to oppose the foreign advance
(nntinnrd nn irroad pa«e.
COLUMBUS, ,IN< INNATI. INDIANAPOLIS. ST.
a — >U served by splendid trains over th* New-
York Central! Lake Shore and Biff Four, ftall . n
New-York Central Ticket Agent, and get particu
lar».-Advt.
NEW-YORK. THURSDAY, JULY 26, 1900. -FOURTEEN PAGES.-^T^KT-ja
PORTION OF PRODUCE EXCHANGE TO BE OCCUPIED RY THE STOCK EXCHANGE.
ROBERTS MOVES EASTWARD
AGGRESSIVE TACTICS OF BRITISH— HALF
WAV TO MIDDLEBURG.
[CbuyrlKht ; i:w>. By The New-York Tribune.]
[by cable to the tribune.]
London, July •_'•;, 1 a. m.— The campaign in
South Africa has taken an unexpected turn.
Lord Robert?'? army has advanced to Bronk
horst Spruit, about half way between Pretoria
and Middleburg. He is leaving Pretoria and
Johannesburg under a strong guard, and acting
on the theory that the Boers profit by his halts
and lose whenever his columns are in motion.
The Boers have attempted to thwart his plans
by raids west and north of Pretoria, and to hold
him back by hanging on his flanks. Just as they
did when he set out from Bloemfontein to Pre
toria. He has again pushed ahead, and is strik
ing for the gateways to the Lydenberg district,
leaving Lord Metbuen and General Baden-
Powell to suppress the raiders in the western
district, and Colonel Broadwood to pursue Gen
eral De Wet across the Vaal.
It is not clear whether General De Wet has
made a fresh haul of two hundred prisoners be
longing to the Welsh Fusiliers near Rooder
val, or whether this incident is an amended
form of the previous account of the capture of
one hundred Highlanders.
Th* situation is most confusing, and veuirsrrs*
are shaking their heads over it, but apparently
Lord Roberts has decided that the best method
of suppressing guerilla warfare is to follow the
railway toward the entrance to the Lydenbt-rg
district, and to cut off Boor communications
with the only remaining base of supplies at
Delagoa Bay. The plan is a bold one, since
commandoes of raiders are prowling about in
many directions, but Lord Roberts counts, with
out doubt, upon effective support from Sir Red
vers Buller. and also upon the paralyzing effect
of a renewal of tl.e advance toward Mr. Krii
ger's last stronghold.
There was a hot weather debate in the House
of Commons yesterday over the South African
policy, with Mr. Chamberlain as cool as mid
winter, and forcing the small group of Liberals
to take up the plain issue which he insisted
upon defining. Mr. Chamberlain spoke with re
markable energy, and asserted that the Govern
ment's policy in dealing with the Dutch would
not be vindictive, but would end in disarming
them politically. The Liberals were divided and
harassed, and the Government was rv^-riilned by
heavy majorities This debate has r ..ssnt Mr.
Chamberlain to the front a? an agK'essive
fighter, an: ' ha.» strengthened the impression thai
th«-- Unionirts will dissolve Parliament in Octo
ber! I. X. F.
TEXT OF ROBERTA'S DISPATCHES.
London. July 2."i.— The War Office has received
the following dispatches from Lord Roberts:
Vandermerwe Station. July 24.— We made a
general advance yesterday from the position we
have been holding, east of Pretoria, since June
V 2. Lan Hamilton, irom the north, reached Rust
fontfin. seven miles north of Bronkhorst Spruit,
on July 22. This so completely surrounded the
enemy's line of retreat that they abandoned the
strong position they had been occupying in
front of Pole-Car***-. Stephenson's brigade ad
vanced yesterday unopposed to Elands River
station. Our right was protected by the First
and Fourth brigades of cavalry, under French,
and Button's Mounted Infantry. The former
crossed east of Wilge River.
Railway and telegraphic communication were
restored last night.
In the supply train captured at Roodeval were
200 Welsh Fusiliers, most of whom had been
prisoners. De Wet's force is continuing to move
northeasterly. It was at R.oodepoort on July 22,
with Broadwood not far behind and Little' 9
Cavalry Brigade following Broadwood.
Baden-Po\v?ll reports as follows:
Magato Farm. July Colonels Arey and
Lushington, with 4.',0 men, drove 1,000 Boers
from a very strong position, and scattered them
with considerable loss. Our casualties were six
killed and nineteen wounded.
The second dispatch from Lord Roberts read
as follows:
Bronkhorst CpruU. July 24.— marched here
to-day. This is the place where the 94th was at
tacked on December 20. 1880. The graves of th
officers and men are in fair preservation, and
will now be put in good order. The march was
unopposed, but French's Cavalry and Hutton's
Mounted Infantry, making a wide detour on our
right, met bodies of the enemy. These were
driven back, leaving several dead and wounded.
A good many were also captured. Our loss was
me killed.
Broadwood reports that he captured five of
De Wet's wagons to-day. He was waiting at
Vredefort until Little joined him.
TRIAL OF THE VARFAG.
Boston, July 25.— The new Russian cruiser Vana».
which had her builder's trial off the New-England
Coast to-day, developed a maximum speed of 24.65
knot*, with IK.M revolutions of her propellers.
The trial, which was held primarily for the pur
pose of standardizing the screws, resulted In fixing
the number of revolutions at 153 as requisite to
produce the 23 knot-; which Is called for by the eon
tract between •>-,- builders and the Russian Gov
ernment.
That she attained a speed of 24.65 knots is taken
as a promise of even a better showing on her speed
trial later, because at no time to-day was she un
der forced draught. Her engines developed 20.000
horse power during the test On th« last (eg •■'. her
course the cruiser ran Into a storm, and h,-r build
ers being satisfied with her showing., they did not
take note of the figures on that leg.
FAST TIME. INCREASED COMFORT.
Pennsylvania Limited to Chicago, the foremost pas
senger train in service. Sumptuous meals; su
preme elegance. — Advu
NO THIRD PARTY TICKET.
ACTION OF GOLD DEMOCRATS AGAINST
IT-ANTI-IMPERIALISTS GET THE
COLD SHOULDER.
lUT TKLF.'IiiArH TO THE TRIBtNE-l
Indianapolis, July 2" (Special). — The anti
imperialists came and saw, but utterly failed
to conquer, and there will be no fusion between
them and the National Gold Democratic party.
With the exception of a small minority of the
latter the sentiment against fusion was out-*
spoken, emphatic and so decided that it could
not be misconstrued, and while there was a dif
ference of opinion among the Gold Democrats
themselves regarding the expediency of nom
inating a ticket the dominant sentiment was
opposed to such action, and there will be no
National Gold Democratic ticket this year.
■ It early developed that there was nothing in
common between the purposes of the members
of the Plaza Hotel Committee an I those of the
Gold Standard Democrats, for the first, while
professing to fear the triumph of Bryan, would
have made a campaign especially against Pres
ident McKinley. because of the greater im
portance as they view it, of imperialism as a
real issue before the country, and the others
look upon Bryanism as the thing which above
all else must be guarded against in the coming
campaign.
Thus viewed, there was no common, ground
on which the two could stand, and the prop
osition of fusion was practically killed before
it was presented to the Gold Democrats for con
sideration. It also developed that the majority
of the committeemen believe that independent
action would result in holding a great many
Democrats in the close States to the third
ticket, and that if left to make their selections
for themselves these Democrats, or at least a
great majority of bern, would vote for Mc-
Kinlej . As the question was thus presented it
suggested he further quest whether the Na
tional party should assist Bryan by nominating
National candidates, and the answer was in the
negative.
The deliberations of the committee were not
attended by any excitement, and the discus
sions were marked by the most perfect candor
and the highest possible courtesy. When Com
mltteeman HalJeman, of Kentucky. retired from
the committee, with the suggestion that the
money left over from the fund of four years
ago i ■• sent to David B. Hill "to use as his
judgment may direct." there was something
like a sarcastic smile upon the face of each
committee-man, but the suggestion did not evoke
a reply. The antis are greatly disappointed,
and will ask he Anti-Imperialist I* League,
whirlMneets here on August 13. to place a ticket
in the field.
The anti-imperialists, who came here for a
conference with the Gold Democrats, issued a
call to-night, for a National convent! to meet
:n this city on August 14. The call invites all
Independents to assemble and join in nominat
ing National candidates. The declaration of
principles Is the same as that of the Plaza Hotel
meeting, except that the declaration regarding
protection is omitted. The new party is to be
known as the "National party." An address
Issued with the call declares that the usefulness
of the Gold Standard party is at an end. and
the necessity for a new organization is im
perative
adopting the following resolutions, the
National Committee of the National I>em
party adjourned until !<"> a. m. to-merr
Resolved. That in the opinion of this com
mittee the nomination of randk'ates by the Na
tional Democratic party for the offices of Presi
dent and Vice-President is unwise ani inex
nt.
•;d— That »> reaffirm fh-=> Indianapolis
rlatform of 189 ft
Third— We recommend the State committees
in thHr r-spective State.* lerve their or
ganizations and take such steps as in their opin
ion may best subserve the principles of our
party, especially in th^ maintenance of a sound
curren< y, the right of private contract, the inde
nce of the judiciary, and the authority of
the President to enforce Federal laws, a covert
attack .>n which is made under the guise ,-.f rhe
denunciation of government by injun-ni^n
We uru-" th- \oters not to be deceived by the
plea that the mrney question has been finally
settled. The specific reiteration of the demand
for the free coinage, of silver at the ratio of lrt
to 1 by the Kansas City .Convention and the
history known of all men in «'cr.nection there
with emphasize the danger of this demand.
We indorse the action of Congress in passing
embodying the gold standard, as a step in
the right direction. We f- lid be dan
gerous to elevate to executive power any one
hostile to the maintenance and enforcenw
this law
Lewis E. Erich, of Colorado, who since I*»'.»H
ha? been prominent and active in the National
Democratic movement, said:
This action of the National Committee of the
Gold Democracy is nutra^ous. The whole thing
is simply a McKinley !nd<>r«em--nt. and I have
no d'.ubt that those immediately interests! in
iseuing the call intend-d such. I have done with
the committee and the present organization ot
th«* party and shall tender my resignation.
Liater Mr Erich wrote his letter of resignation
and withdrawal, which was accepted by the
committee
DETAILS OF THE MEETING.
Indianapolis, July 23. — Of the thirty-nine mem
bers of the National Committee there were present
nineteen. Two of the committeemen held several
pro»iMi. The hour of 4 p. m. had been appointed
for the conference with the Plaza Hotel Commit
tee. At that time the latter committee made Its
appearance and a sub-committee presented an ad
dress setting forth the proposition for fusion and
• third party ticket, with the reasons presented at
the New-York meeting. •
Upon the hearing of argument from John Jay
Continued on fourth pace.
PC'LANT- WATEB Dl 3 N. T.
Carioadk received daily, orders promptly tilled.
— Advt.
MOB RULE IX NEW ORLEAXS.
CROWDS PARADE THE STREETS. SHOOT
ING AT RANDOM — TWO NEGROES
KILLED AND SEVERAL WOUNDED.
[BY TELEGRAPH TO the TRIBUXE-1
New-Orleans, July 2<". The mob was in com
mand of this city to-night. Several people are
reported dead and an indefinite number have
been wounded and beaten. The assassination
of Police Captain Day and Officer Mora by the
negro Robert Charles brought about a condition
of unrest here which called for the placing on
duty of many extra police officers and tin call
ing out of a company of militia to aid them in
preserving order.
Trouble has been brewing since yesterday
evening, but it was not until it was apparent
that the negro murdered would not be caught
that the hoodlum element became fully aroused
and primed for violence. A quiet tip was given
out this evening for a mass meeting at Lee
Circle, and. while there were no leaders or
prominent citizens in the crowd, it swelled to
several thousand people, who began a march to
the scene of the crime, attacking ail the negroes
■who could be found. A number were shot at
and several were wounded. Chief Oaster and
every available policeman, as well as the mili
tia, hastened to the scene, and succeeded In pre
venting a general riot, though it could not sup
press the lawlessness.
After ineffectual attempts at speech making
the mob marched up the boulevard, shooting at
random. the negroes scattering in every direc
tion. A car was stopped at Euterpe-st.. and in
an effort to beat a negro two young men were
horribly beaten and kicked, their faces being
almost unrecognizable.
The mob next started for fh^> parish prison,
with the intention of lynching Pierce, the negro
who was with Charles when m was
murder- 1 .
chief Gaster h*^ assembled all the polic in
tne c tl 1 the Jail, ani the crowd, now
Increased to fully four thousand, found a solid
■ an attack on the jail. The
mob satisfied Itself by sh -tears.
wounding a number of people, white as well as
although the wounding of whites was ac
*al.
Turning into Rampart-st . where a number of
pawnshops are located, the mob forced open
the doors and appropriated all the arms and,
without doubt, quantities of other articles. A
block further away a stray shot struck a little
newsboy in the breast, wounding him. it is be
lieved, fatally. Several negroes were shot in
Franklin-st.
The negroes all over the city are terror stricken
and an extremely ugly feeling exists, as it Is
believed by most of the citizens that the mur
derer Charles is being hidden in the city by the
negroes.
At midnight th-» mob had left the neighbor
hood of the parish prinson and had gone up
town, where it will probably disperse. It was
composed largely of boys from fifteen to eigh
teen years of age. Two negroes are known to
have been killed.
STOi X EXCHANGE NEW HOME.
PRODUCE EXCHANGE VOTES TO LEASE
12,600 SQUARE FEET OF ITS FLOOR.
The members of the Produce Exchange yes
terday unanimously decided to lease a part of
their floor to the Stock Exchange while the
building now occupied by the latter is being
pulled down and a more modern and larger
structure is being erected in its plac«». Negotia
tions between the authorities of the two ex
changes have been in progress for some time,
and as a result the managers of the Produce
Exchange announced that they favorably viewed
a proposition which had been submitted to them
whereby the Stock Exchange would lease for a
term of about a year nearly a third of the floor
space of the Produce Exchange. Before any ax
rangement could be finally entered into, how
ever, it was necessary to secure the consent of
the members a.« a whole of the Produce- Ex
change.
For this purpose a special meeting was heM
yesterday afternoon. It was attended by a large
number of members. Elliott T. Burrows, presi
dent of the Produce Exchange, In introducing
the question, said there were three reasons why
they should accommodate the Stock Exchange
members— first, out of courtesy due from one
body of business men to another: second, be
cause the proximity of such a financial body
would bring business to the produce men. and.
lastly, because rent would be received- for space
which was not needed at the present time. Evan
Thomas then proposed a motion giving author
ity to the managers to lease to the Stock Ex
change about twelve thousand square feet at the
southerly end of the room, from April l"«. 1901.
to May 1. 1902. The motion v* as carried with
hearty unanimity. The proceedings lasted only
■ few minutes.
FAST TRAINS VIA PENNSYLVANIA RAILR<"AI>
to Chicago, Cincinnati. Cleveland. Indianaoolu
Louisville and St. Louis. -Advc
PRICE THREE CENTS.
CUBAN POSTAL FRAUDS
ATR BRISSTOW GIVES RES! ITS ->r* HIS
umariGATi
METHODS OF RATHBOVE AND NEELT EX
POSED—EMBEZZLEMENTS AND N
UW7UI EXPENDITURES.
Washington. July 2."».— A frill summary of tn*
report to Postmaster-General Smith of Mr. Br!»
tow. the Fourth Assistant Postmaster-General,
on his investigation into the postal frauds In
Cuba was made pub! by the Posjoff.ce -part
ment to-day. It is as follows:
Receiving your letter of instructions of May
16, I left Washington for Cuba and arrived «t
Havana on Saturday. May It*. After a confer
ence with General Wood I decided to tak» im
mediate charge of the Department of Pnsts.
Upon assuming charge I immediately began a
careful Inquiry as to the extent of the frauds
and embezzlements and the necessity for a re
organization of the Department.
EMBEZZLEMENT?.
On January T. ISO 9. Director Rathbor.<* ere*
ated a Bureau of Finance, to which was as
signed the- custody of all stamps and postal
supplies, furnishing the same to postmasters and
receiving remittances therefor. C. T. W. Neely
was appointed chief of this bureau.
A Bureau of Postal Accounts was also cre
ated for the pur. of keeping a record of all
receipts and expenditures nf the Department of
Posts, and if such record had been property
kept would have served as a check upon th*
transactions of the Bureau of Finance. This
Bureau of Postal Accounts on July 1. 1*99. was
changed to a division of the Auditor' 3 offlce, and
its chief. Dr. W. H. Reeves, was appointed, by
the Secretary of War an assistant audit for
the island.
There were two classes of postmasters, bonded
and unbonded. Bonded postmasters were fur
nished postal supplies on credit and remitted fr»r
the same periodically. Unbonded postmasters
were required to pay cash for all postal supplies.
Accounts were opened by the Bureau of Finance
with bonded postmasters, but all remittance*
from unbonded postmasters were entered as caah
sales. No accounts were kept with these un
bonded postmasters. Postmasters were not re
quired to report to the Bureau of Postal Ac
counts the amount of their requisitions or remit
tances so that all the information that bureau
had as to th- financial transactions of th»
Bureau of Finance was received from the chief
of that bureau, Neely. himself. Thus there was
practically no check whatever upon his transac
tions. As a result of the investigation. I am able
to submit th»» following summary of the finan
cial transactions of C. F. W. Neely:
St.-wk r««-eiv.v? from January '. 1«39. to liar
V>. 1000 „ . S>7r>.*s4 13
Cash r«*»tv».i from all sourctw. January 1.
11VS. to May 13. lOtv . —....— ... 53«.9a*M
Total _ .„.. $1,327,330**
, -..-:■
This $1,521 9 i 3 the total amount with
which Neely is chargeable His records, as he
left them, show him entitled to the following
credits:
Stock m han.i _ Sl»l.fl3?M
C^sh on ha.Tl 5.333 nrt
Stock furnish>-d to postmaster* *.' . ;. ; 4.,
Amount of postal fimd3 dep05ited............. -HTiSTS t>t
MiscellaiW'ous cr-jlta . VvjSlt
Surchareed gtanryi »:>;*.; to have be<?n de
stroyed ; 33Z.V937
Shortage to balance . _. 30.6C073
Total _ $1..*.2T.350nH
That i-», if Neely had balanced his own book 3.
taking all the credits he claimed, he would have
been short $30,600 73. Bat he is credited with
$392.0«9 37 for surcharged stamps destroyed.
which is in part a fraudulent credit. The sur
charged stamps were used from January 1. 1591>.
to August 31. 189 ft. when the new issue of Cu
ban stamps was received. Neeiy had received
• j.Tii2UX»> worth of these surcharged stamps. H?
disposed of and held receipts for 5230.179 'Ji>
worth, leaving a balance on hand Ausrust 31.
ISOO. $291.52050. So thaf if h- had destroyed
all of the surcharged utiar- that he had «r.
hand August SI ht» could nut have destroyed
more than £291^2080 worth, or $l<X!.7tiN."7 less
than ht» was given credit floi bavin? destroyed.
It is not believed, however, that h^ destroyed
all the surcharged stamps that tie had on hand
There were $44 ."1) worth in. the Department of
Posts on May 2i>. 1900, when in- Inspection be
gan: ?o»_>0 worth were sold trtrf.u^h rh^ Havana
Po^toffice on April 2T>. 26 an-i 27. Uhio. and
numerous other sales werr- made to stamp deal
ers and collectors of these surcharged stamps
after the reported destruction. It is not be
lieved, however, that th-^s-j sales exceeded $2i>.
000 and probably did not amount to that much.
The minimum of Nee'.y'a embezzlements,
therefore, may b^ summarized as follows:
Shcrtag* as shown by his ott. r»ooni9 „ $30,400 73
Ese«ss of credit by d^stru'-tion of surr-harTfrd.
stamps d^rinttety ascertair.el _..__.... ini.ll3 1«
Total _ • 5131.713 S»
This will be increased by the discovery of ad
ditional sales of surcharged stamps, but ib-111
not exceed $15O.0(» in th^ aggregate.
An interesting compilation has b*»*Ti made
from Neely's cash book. It shows:
rash rf>c«»K-ed from all sources.... 1,, *.v 65
Cash accounted f-->r -._ ■*."«. *SI IT
leaving a cash shortage of. ....„.._„.._ $119.2T4 43
His cash books do not show an accurate
amount of cash received, because there is evi
dence that he did not en:er oa his books all the
cash received from unbonded postrrasters. The
first computation is considered the most reliable
estimate- of Neely's embezzlements that can be
arrived at.
Numerous exhibits are submitted with the re
port relating to Neely's financial transactions la
detail.
Director-General Kathbone appointed C. T. W.
Neety. Chief or the Bureau of Finance, who had
custody of the stamps; W. H. Reeves. Assistant
Auditor for the Island cf Cuba, the only man.
who could in any way have haJ a check upon
Neely's transactions, and D. MarSeld. Chief of
the Bureau of Registration, as a commission to
destroy the surcharged stamps. NeWy and>
Reeves entered into a conspiracy to report a.
larger quantity of stamps destroyed than were
actually destroyed, and thereby defraud the
Cuban Government.
OTHER FRAUDULENT '
Neel; fraudulent transactions, however,
were not confined to embezzlements only, and
while the amounts thus received by him were
small as compared witla the outright embez
zlements, yet they show the same oScial de
pravity and utter disregard for the interests of
the public service. Before going tr> Cuba Neely
was engaged in the printing business at Mua
cie, Ind.. being the proprietor of the Neely Print
ing Company. X«? had a business associate, or
employe, named Cowan. Neely claims to have
sold the plant to Cowa::. It is not believed,
however, that Cowan «-v*r paid Neely any
money for his pretended interest. Ne^ly sent
his company large orders for printing for the
Department of Posts of Cuba. Cowan fixed the
prices and rendered the bills in the name cf
Cowan >& Co. Cowan says he was instructed
to do this by N^'.y. who -i-.C net desire the name
of the Net-ly Printing Company tv appear in
the business transactions of the Department of
Posts. The books of this printing company
show that Cowan received iror.x the Dejart
ment of Posts fo- printing $7.'.».'?7 *',\\ while the
bills rendered, marked pa'»l. and the money
order records at Muncie. Ind.. show that he r*
cei\ed $lO,i>00 1.". or *2.im ."• more than indi
cated by the books. The investigation shows
that some of the bill? were paid twice, and the
whole transaction indicates collusion between
Neely and Cowan to defraud the Cuban Gov
ernment.
Director-General Rathbone. when asked why
he approved these printing bills and permitted
them to be paid— some of them twice — said that
he did not know until after Neely's arrest that
there had been any printing done at Muncie for
the Department of Posts. If this statement is
true, he convicts himself of the most utter and
lndefenaihle negligence of hia official duties, for
every bill required his approval before it waa
pat.!
Ne^ly was appointed to a poeition In the Cuban
postal service on December 24, 1M». and as
signed to duty in Havana on January 7. ISirt).
His salary was fixed at >' *• • per annum. H*
was financially embarrassed at the time of his
appointment. He did his banking business with
The Union National Bank nf iluncie, and his ac
count was frequently overdrawn. On February
POLAND' POLAND! POLAND! POLAND!
Is the purest natural spring water la im wutM.
— Advt.