THE OMAHA DATTA" "REE: THURSDAY, JUJjY 26, 1000.
BUILDING AND LOAN LEAGUE
First Day's Session Taken Dp with tho
Routino Addresses,
PRESIDENT FITZMORRIS ON THE WORK
How Cn-Operntl ve Home tlnllilltiK
Hmh Allied In lir Trill in till of I lie
, Centura Some Stntlstlun on
II Kxtent.
INDIANAPOLIS, July 25. The flret ses
Ion of the convention of the United States
Building and tvian associations was helu
here today. Many men prominent In build
ing and loan uffnlrs In different parts of the
country are present. Ono of the prominent
rli;ltors Is Carroll D. Wright, United .States
commissioner of labor, who will addrem
the league tomorrow. The first session
was largely taken up by addresses dealing
with building associations and their benefits.
Tho address of President Kltzmorrls was,
In cart, as follows:
We nre nenrlng the threshold of a new
century. Looking Imck throiiKli the gath
ering shadows or tho old, Illumined by the
fitful lire of artillery, we behold 11 century
distinguished for Its marvelous contribu
tions to civilization and human progress
In every department of human effort, so
grant and so many have been the develop
ments that the addition of a new one no
longer excites tistotilsliment. Inventions,
discoveries and the application of new prin
ciples to old methods constitute a part of
the superb equipment of our time. What
would havo been considered miracles In our
father' younger days nre now common
nltce. Within tho matured lifetime of most
members here we have witnessed and par
ticipated In numberless evolutions, probu-
my tne greatest in imineuinto results in
tho century. Since the civil war pi rlod we
have seen the star of empire move unerr
ing westward, a vast doman neonled by
energetic millions, and towns unci cities
reared above tho craves of the llrst set
tiers. Tho telegraph, then in Its Infancy
and sparingly employed, now encircles tho
plobe and makes the affairs of nations and
f eoplo a dally history. Marvels In modes of
ravel by land and sea are so many and
rnrlcd that time mid distance no longer
concern the. traveler, but rather tempt one
to forsake "hntnn comforts and mix wmi
the moving multitude. Kleetrlclty gives us
llgnt, ncnt and power and reveals tne
mysteries of human Ills. The perfecting
press and the linotype have revolutionized
ilin art of nrlntinc and develoned the mod
ern newspaper. The sewing machine, the
tvnewrlter. the rennet and binder and
countless other labor-saving inventions
have wrought changes of Inconceivable
magnitude In society, industry and coin
mere nnd the nntlimal life. Kqually mar
velous nnd beneficial are tho developments
In medicine, chemistry, physiology and
other sciences. Tho commonplnce mntch
no less than pnlace cars and pnlatln! steam
ships, have Increased the comforts of tho
world. Hverythlng, from n pin to a loco
motive, from a toothpick to a horseless
earriage, from a pair of shoes to a suit of
clothes, are more sclentltlcally lltted to
human needs than ever before. Labor-saving
appliances have placed the luxuries of
1 generation ago within tho reach of all,
and multiplied opportunities for the ener
getic, the skillful nnd the Industrious.
Morn employment and better wages, better
educational facilities, better books, music,
art, literature, more of the pleasures of lire,
more and better homes, are the vlilble and
available results of an Inventive nnd pro
gressive age.
Wlint Association Ilnvr Done.
To what extent have building and loan
associations contributed to these splendid
results? The question cannot be answered
In delull because associations do not fur
nish tho necessary data. The only statis
tics available are those supplied by tho
special report of Hon. Carroll I), Wright,
national commissioner of labor, Issued In
ISM. According to that report there wero
R,8:i8 associations In the I'nlted Slates at .ho
close of 1892, and their averago age was six
and one-fourth years, Of this number, 4, til
reported on the number of homes their
members acquired during the life of tho
associations. The term "life of nn associa
tion," as employed In the report. Is taken
In menu tho time required to mature n
werles of shares. This varies from nine to
twelve years. Kleven years may be taken
as a fair average, in tho eleven years
preceding IMS the 1,111 associations reported
a total of .111,765 homes acquired by mem
bersan average of seventy-one for each
association. Assuming that the 1.30 asso
ciations not reporting averaged with the
ill hers, tho total number of homes secured
by members foots up 113,723. Proof of the
accuracy of these totals Is furnished by the
same authority. Out of I.MHt.ooo sharehold
ers reported at the time, 455.411 were bor
rowers, merely being home-getters.
Tho number of associations at the present
time is not ns groat as in 1W. Several
hundred were overwhelmed by the llil'inclal
crash of ISM unit the business depression of
succeeding years. 1'nder tho stress of hard
times many consolidations were effected.
However, the total number of associations
at the present tiino Is 5,4ST, only SKI less
than tho high-water mnrk of ISM. I'm
iloubtedly these associations, whether old
or new, have been as effective In promoting
home-owning as the associations embraced
In the government report. Applying to them
the same ratio of "homes acquired by
members" for the years IKM-TO, Inclusive,
seven-elevenths of tho average life of a
series of shares, the result Is, 2l7,5!tfi homes.
Adding these to the returns of the govern
ment, we have a grand total of fiill,:!25 homes
acquired by members In eighteen years
through the agency of building and loan
associations,
.Mimnltlldr f the Work.
The magnitude of the work of building
and loan associations In a score of years
will be bet tot understood by a few com
parisons. In the city of Philadelphia, the
premier city of homes In the I'nlted States,
there are, according to recent tax depart
ment relnrnH, 23,RS,ri homes, about 40 per
rent of the number obtained through co
operative associations. Tho number of
homes In Brooklyn. N. Y , second In rank,
might bo added to that of Philadelphia,
without crowding the grand total rolled tip
bv building and loan associations. Placed
side bv side, nnd allowing each home thirty
feet of ground frontage, they would extend
along nn unbroken line of 3,757 miles, or
across the continent from Hangar. Me., to
San Kranrlsco, and out toward Hawaii and
the Philippines for a distance of 151 miles.
The foregoing llgures clearly Illustrate
the Important part taken by mutual asso
ciations In promoting the comfort, happi
ness and Independence of the people In
every city and hamlet, in every Industrial
center, aro visible proofs of association
effort, not only In homes secured, but In
the practical lessons of thrift taught to
members. Hvery association Is a school
house of Ihrlft. and the hahlts of frugality
there taught and continued In ever-widening
circles have been potential factors in
banishing dependence and multiplying the
Inspiring Influence of the family llreside. It
ts not unreasonable, therefore, to claim for
them n place among the practical, uplifting
forces of the age.
I'reni'iil Condition",
Mr FlUmorrls revlowed the ninny ohnl.i
el?s overcome by mutual associations, the
imitation) and pcrverwlons of co-operation
in home-getting and the losses sustained hv
tho failure of speculative concerns. "These
facts," ho contended, ' pmvu.1 thai expansion
of neighborhood nfocIatlonn Is Impractica
ble. Ahovo the disastrous renults of the at
tempt looms the unavailable wisdom of the
original system of local societies."
In conclusion he ald: "A significant
and gratifying feature of the Improved con
dition of tho people nnd the pronounced
.lability of the national currency Is reflected
In a marked degree by the abundance of
money at tho command of associations.
This huo brought about a general reduction
of tho Intercut charge to borrowers and a
corresponding reduction of dividends, bo
obies eradutlly forcing the abandonment of
premiums. Tho advantages of an abund
ance Is partly offset by the excessive ad
vance In the coat of building material, which
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cheeked building operations In many sec
tions. Tho tendency toward normal prices
for building material, now apparent, will, If
fully realized, greatly Increase the useful
ness and prosperity of associations."
Secretary Ccllarlus read his report, deal
ing with tho condition of the len&uo and
local associations. He said In part:
Mtntlfttlcn of Associations.
Hulldlng and loan association statistics
for the last year are somewhat disappoint
ing and the aggregate results misleading
unless proper analysis be made of the
llgures. There are now In the I'nlted States
5.1V, local building and loan associations,
with 1.512.SS5 members nnd aggregate as
sets of Wd.M0,170. As compared with last
year this Is a decrease of ninety-one as
sociations. 106,112 members and l5,Gfi0.ISt
net deereasf In assets. This unusually
heavy shrlnknge In assets can more than
bo accounted for by the llgures of three
states, which for several years past have
shown heavy losses, namely: Illinois, Mis
souri and Indiana. In Illinois last year there
was a shrlnknge of J9.3I7.15.I In assets; Mis
souri showed a decrease of SI. 419,311, and
Indiana $3,153,227, making a total of $17,219,
751, which Is considerably In excess of the
total net loss In assets of nil the stntes.
In other words, If the resjlts In tho three
stntes mentioned, where abnormal con
ditions have existed, be excluded from the
calculation, the net result would bo an
actual Increase In assets for the other
stntes. Within tho last three years these
slates have shown decreases In assets ns
follows: Illinois, $:fi,0o0,!)72 . Missouri, $12,
517.137. Indlnna, JG.SCS.WO; u total of $15,
lTT.Ota The conditions which have brought about
this result are attributable largely to
causes local to these respective states, nnd,
fortunately, did not similarly effect the
general building and loan business. Penn
sylvania Increased in assets In the last
three years $3,r,-,7,r,57; Ohio Increased $5,503,
ln; Massachusetts, $3,837 or a net In
crease in three years Ir ittese states of
JH.3ys.797; the abundance of money which
began to accumulate In the treasuries of
these associations last year nnd for which
ready borrowers could not be obtained tins
continued during the present year and
has resulted In a further lowering of both
the Interest and dividend rntes. The as
sociations cannot havo n good, healthy
growth while this situation continues. In
fact, they nre likely to lose In assets be
cause associations unable to loan their
rutidfl are resorting to uli enforced retire
ment of their stock to dlsnosu of the
surplus. So that a decrensti In assets, as Is
ine case tli s year, is not necessarily nn
unfavorable showing. Hulldlng associations
are just as popular and sure as ever tliey
have been, but changing conditions are
temporarily retarding their growth. It is
hoped and conlldcutlally believed that tho
ordinary unti natural conditions win soon
again be resumed, when more satisfactory
results can be obtnlneil. The stntes show
ing an increase In assets for the year nre
the following: Ohio, $1,320,(22; New Jersey,
$1,782,1711, Massachusetts, $951,291: Con
necticut. $tlG.fi9S; Wisconsin, $II.IS2. The
following states showed a decrease In as
sets us Indicated' Pennsylvania. $5l.i,33);
Illinois, hi. i:..i: inow yorK, juii.oH; in
dlnna, $3,133,227; California. $IS5.772: Mis
sourL $I,419.3B9, Michigan. $720,110; Iowa,
iiu,iu; Kansas, jii.Mi.wj; :senrnsKa. lKi.917:
.Maine, $3I,2S2; Tennessee, JHG.Ofll; New
nauinsnire. Jli.S.il. Alt lomr i there was
not much new legislation enacted during
the last Vear. vet rtttrHntiitK'i nf Mtnt,,
leagues and friends of building nnd loan tin-
nut-unions in u number ot states were
kept quite busy before their respective
general assemblies, mainly In an effort to
prevent the passage of Inimical bills. This
was particularly true In New York, Texas
and Michigan, where the tax question has
been under consideration. Tho state leagues
in" io ne congraiuiaieu upon tne eriectlve
work which was accomplished and which
has further demonstrated their usefulness,
jmwer aim mrcncin.
JESTER'S DEFENSE BEGINS
Witnesses Are nroiiiclit I'orirnril "Who
Contritdlrt Slnli-iuent Made tiy
Slille's Side.
ST. LOUIS, July 25. A special to the
Post-Dispatch from New London, Mo., says:
Tho trial of Alexander Jester for murder
wag resumed today with W. W. Settle of
Monroe county, Missouri, on tho stand.
Mr. Settle testified for the state several
days ago, The defenso subpoenaed him for
tho purpose of contradicting some of tho
state's witnesses who swore that It was
during the morning that thoy saw Jester
and Gates pass through Middle Grove. Tho
witness said that in 1871 when ho was
Janitor at the Middle Grove church, he
cleaned up the building In the afternoon
and ho was going to the church when ho
met Gates and Jester.
W. II. Ownsby of Salisbury, Randolph
county, Mo., Jailer at Paris In 1871, when
Jester was llrst arrested and placed In this
Jnll, charged with the murder of Gates, was
tho next witness. The defense tued Ownsby
to contradict tho testimony of K. M. Struck
of St. Louis, who snoro last Saturduy that
he saw Jester and Gates near Sidney, Mo.,
and later that he s.iw Jester in tho Paris
Jail and the prisoner told him that Gates
had cut his own throat.
Niiiv No niooil lii II ti I r ii Lane.
W. W. Rlloy, an old citizen of Monroe
county, testified that ho saw Jester and
Gates inss through on the Middle Grove
and Paris road one morning In 1871, and that
he rode horseback, about thirty or forty
miles, behind them. Tho witness said ho
did not observe any blood In Hulen lane
or on tho road turning south, or on any
road. He did not sec the other wltntoses.
Mr. Clark Mr. Satterley and W. S. Shrews
bury, who swore they rode nlorig this lano
about tho time Jester pacd with Gates.
James McMorrls, who lived on the Recce
creek, swore, that ho saw tho carcass of a
cow going down this creek In the spring
of 1871 or 1872. With this witness the de
fense Is trying to account for the body
Mr. Riley, for the state, swore ho saw Moat
ing down this creek In 1871.
With W. U Jarvls of Columbia the de-
fenso Is trying to account for tho blood
found near Deo creek. Ho said:
"My father owned a prairie farm near
Centralla In 1S71. Wo were hauling rails
from tho woode west of the Dee branch to
the pralrlo farm. My horso broke thnrugh
the ire nnd cut his leg, and, after crossing
the bridge. I stopped to examine the wound.
It mnde quite a pool of blood In the snow
where tho horse stopped. The Gales search
ing party recalled tho Incident and asked
about the blood at tho time of the oxclte-
mcnt over Gilbert Gates' disappearance. '
fester's Sou on Stand,
Harvey Jester, tho defendant's oldest son,
testified In part ns follows:
1 worked In Wichita In the sniliic of 1S0.
Father had forty or lift v head of mixed
'little at that t me. I worked In n hotel at
Wichita three months and then when
father came after me to take care of the
family 'vhlle be went to Indiana l drew
my money and went home. In the mean
time father hnd sold the cattle
I went with father as far as Hmporla to
bring hock a wagon he had left there for
repairs Father started with four horses.
two sets of harness, one wagon, a buffalo
calf, dried buffalo meat and nil other
necessary provisions, lie sent clothing and
provisions nomii by me. wither counted
his moiiev In mv presence before he left
Kmporla and he had over $350. lie said he
expected to use t lis money to buy an out
lit with which to bring Ids sister and
family west. I had about $sn, which I gave
Him.
He went on to Indiana and then home. I
heard from father while he was In Illi
nois. He said he had bought n team. I 'rum
Indiana lie wrote again .auoui .Miiv l
f'lther returned and In a very ' few
moments, before be ever entered tin- house
he was arrested. The otllcerM rode up and
covered him with their guns and ordered
him to throw up his hands. He did so and
they got down and put bundcuiTH on him.
Tho witness cried bitterly:
"Mv God. what Is this for?" father said
For the murder of Gilbert Gates." replied
the olllcers. "Yes. 1 bo.ight Hint team of
Ullbert Gates and paid him the money for
ll f3.it) said miner. 'I lie otneers tnoK al
the things away that were In tho wagon
i' diner was tried ami seni to .Missouri.
James W. LeoJh. a fisherman, who lives
on 1ho Mississippi, testified: "I was watch
man nt tho Hannibal bridge for fifteen
years. I met A. A. Gates In October, 1S71
at Hannibal. I described a body found over
on tho bottoms nnd ho said tho description
suited that of hts body, and if It proved to
bo tho body of his Bon ho would givo me
$1,000,"
Tho feature nf the d&y was the testimony
of Jester's oldest son. With much grle
and many tears he told the story of his
father's life as he knows it.
Jester Is weakening physically. Sheriff
Jones almost carried htm upstairs to the
courUoum today.
ON CUBAN POSTAL FRAUDS
Fourth Assistant Postmaster General Bristow
Makes His Report.
RATHB0NE IS RESPONSIBLE FOR NEELY
lllreotor tlenrrnl Will t,m, Ills As
sistant DlNlinncftt nnd Severn!
ilnililo) e Crooked nnd All
Were i:trn ngiuit.
WASHINGTON. July 25. Tho postmaster
general has made public tho report of
fourth Assistant Postmaster General
Ilrlstow, who Investigated tho Cuban postal
frauds, Mr. Drlstow finds that Neely's em
bezzlements aggregated at least $131,713
and says he was justified In recommend
ing tho removal of Director General Rath
bone. Whether or not tho latter was
guilty with Nccly In tho embezzlement
ho says there can he no doubt that In
tho mntter of unauthorized por diem al
lowances, personal expenses nnd warrants
cashed nnd unaccounted for, he unlawfully
appropriated to his own use money ot
the Cubnn revenues. Kor this, Mr. Ilrls
tow says, he believes Mr. Hathbono should
be required to answer,
Mr. Drlstow explains that the bureau
of finance Inaugurated by Director Gen
eral ltathbone, of which Neely was ap
pointed chief, was started July 7, 1899.
This bureau was charged with the cus
tody of all stamps and postal supplies.
Tho division of postal accounts, chauged
July 1, 1S99, to a division of the audi
tor's olllce, was In charge of Dr. W. 11.
Heeves, who was appointed by the secre
tary of war. The report sayB that no
accounts of tho unbonded postmasters
were required, remittances being entered
with cash sales, and the only informa
tion the auditor's olllce had of these
transactions came from Neely himself.
There wns no check whatever on his
transactions. From the accounts exam
ined, ho report says, the minimum -of
Neely s embezzlements may be summarized
ns follows:
Shortage, as shown by his own
records $ 30.000
excess of credit by destruction or
surcliargeii stamps, deiililteiy ns-
certnlned 101.113
Total $131,713
This will be Increased by the discovery
of additional sales of surcharged stamps,
hut will not exceed $150,000 In the aggre
gate.
Were Itiillibone's Appointees,
The report says that Rathhone ap
pointed Neely, who had custody of the
stamps; Reeves, tho only man who could
have a check on Neely's transactions, and
D. Wnrfleld, chief of tho bureau of regis
tration, a commission to destroy the sur
charged stamps, of which Neely had re
ceived $522,000, and that Neely and Reeves
entered Into a conspiracy to report n
larger quantity ot stamps destroyed than
were actually destroyed.
Rut, tho report says, Neely's fraudulent
transactions wore not confined to these
embezzlements nnd while the amountB
were small, compared with tho latter,
they showed the same official depravity
and utter disregard for the Interests of
the public service."
The connection between Nccly nnd the
Neely Printing company of Muncle, Intl.,
of which he wns proprietor before he
went to Cuba, Is then explained. The
alleged sale of the plant ot this company
to Cowan, Neely's husincss associate, the
report says, was not a bona fide trans
action, as It Is not believed Cowan ever
paid Neely any money for his pretended
Interest. Neely ordered from this company
supplies for the Department of Posts In
Cuba.
Denis at Mnncle,
The books of the printing; company
aliow It received for printing $7,937, while
tho bills paid nnd tho money order rec
ords at Munclo show $2,131 more than
the amount Indlcatod by the books wns
paid. Some of the bills were paid twice.
Rathhone, when asked why he approved
those accounts, said he did not know
until after Neely's arrest that any print
ing was done at Muncle. If this state
ment Is true, says tho report, he con
victs himself of the most uttor nnd In
defensible negligence of official duties.
Tho Department ot Tosts purohused from
the Keyless Lock company of Indlanapo
lis $54,874 worth of furniture. This com
pany paid Neely $3,292 In two checks
one of $2,972 nnd the other for $320. For
whnt purpose this money was paid him
does not appear. The only reasonable
conclusion Is Hint It was paid as a "com
mission," "subsidy" or a brlbo for tho
privilege of supplying the furniture.
In July, 1899, tho money available ror
salaries was delayed and at Neely's sugges
tlon Rathbono authorized a warrant on
the unexpended balance for the flscnl year
aiding June 30, for $7,251. This sum was
itlmbursed after the July fund became
mailable, but when Neely obtained the war
rant on tho July fund, Instead nf depositing
It, ho enshed it and made no accounting of
the money.
Neely's Hunk Account.
When Neely was assigned to duty In Ha
nna January 7. 1899. his salary wns $1,800.
The report says he was at this time finan
cially embarrassed. Ills account with the
National Dank of Muncle was frequently
overdrawn. February 0, 1899, ho sent a dc
pr.slt of $329 to the Muncle bank and In
February nnd March his additional deposits
ncgregated ll.MO. Thus Neely, with a sal
ary of $150 a month, was able within three
months to deposit $1,859. conclusive proof
that his embezzlement began In February
1899. In May he deposited $837. June $775.
July $903, August $13,125, October $20,250
nnd a number of deposits of lesser amounts
wore made afterwnnl.
The report deals nt considerable length
with tho speculative ventures Into which
Neely branched out In Cuba. They Included
tho West India Trading company. In which
ho Invested $12,500. n brick plant nt Ha
vana, In which he Invested $20,000. nnd
tome mining schemes in South America.
The report that C M. Rlrh, who wns sent
to Havana ns Neely's assistant, told Rath
bone In April that Neely wns "crooked."
Rnthbone denied any such conversation with
Rich. Tho report, contlnu'. ?, says: "Rich
claims to be innocent, but he nt least had
knowledge of Neely's embezzlements long
before he claims to havo told Rathhone
Reeves confessed that Neely paid him $4,000
for concealing the fraud In tho destruction
of tho stnmps. Rich and Reeves protect
against crookedness. How much credit
should be given to their statements It Is
difficult to determine."
Itntlilinnr'N Several Salaries.
December 21, 189S, when Rathbono was
appointed director general of (he port, his
salary was fixed at $4,000. At this time
the postmaster general allowed him a per
diem of $5 In addition. Ho claimed this
was not sulficlent nnd Juno 19, the postmas
ter general Increased the salary to $6,600,
with notification that with the Increase the
per diem would cease.
July 3 Rathbone complained that the In
crease amounted to $675 and asked for an
official resldonce. This was allowed. De
cember 19 the post mutt it general officially
fixed Ratbboue's salary nt $6,500, making It
effective August 1. Rut although the per
diem was cut off, Rathbone continued to
draw It. When called upon by Colonel Dur
ton for his authority for this allowance
Rathbone submitted the letter, suppressing
that part of It prohibiting the per diem. In
closing the discussion as to per diem the
report says.
"It appears, therefore, that Director Gen
eral Rathbone drew from August 1, 1899.
to April 30, 1900, the sum of $1,365 ns n
per diem, which was unauthorized and the
drawing of the same was fraudulent; and
1 therefore recommend that he bo required
to reimburse the postnl revenues ot Cuba
In that nmount."
The bills rendered for furnltur" for the
official residence, the report says, contains
many Items, such as charges for trunk,
gloves, dog collar, overcoat, hats, hats for
coachman, boots for footman, shirts, collars
nnd cuffs for coachman, etc.
Illlls Were Sciindiilon.
Rathbone claimed that It was the custom
of all countries that officials should be fur
nished with such attendants nnd that they
should be clothed at the expense of the
public revenues. When the character of
theso purchases becamo known to the post
master general ho wrote to Director Gen
eral Rathbone ns follows:
I havo today for the llrst time seen cer
tain of your bills as director general ot
posts, which were brought here by Colonel
uurtnn. Some of these bills are not only
wit limit ptithorlty or Justification, but are
scandalous, and never should have been
passed or pnld. The auditor, who Is respon
sible to n different department, was Inex
cusable In allowing them, and your action
In presenting them for allowance wns
grossly reprehensible. Without waiting for
n review and reconsideration of these bills
by a rightful audit you should at once re
Imburso to the Island treasury the sums
thus Improperly paid.
Rathbone made numerous trips. In April,
1899, ho mado n tour of Inspection, nccompa
nled by his family, and hln expense ac
count covered the cntlro expense of his
family. In May of tho earno year he went
to the United States and charged up his
expenses to Cincinnati and Hamilton, O.,
where ho went on private business. The re
port sayn Rathbone wn aware at the tlmo
that theso charges "wero unauthorized nnd
fradulent."
In November. 1899, when he and his fam
ily wero In New York, he charged $230 for
eight days In New York, while waiting for
n steamer. Ho stated that no pnrt of this
expenso was for hl family. The report
says:
I do not think It is reasonable to believe
that tho director general expended $29.50 a
day for personal hotel expenses while In
New York awaiting the palling of a vessel
for Havana, but do believe that these ex
penses cover the entire hotel expenses of
himself nnd family, and that lliey have
been fraudulently charged ugainst the pos
tal revenues of Cuba.
Worm nix I iiiiei'iiiinteil For.
Tho report also calls attention to a war
rant for $500 drawn by Rathbono Juno 30,
1S99, for which no accounting was made, and
nnother $500 warrant drawn In May of tho
same year. It says:
From the records It appears that ltath
bone bad drawn two warrants to himself In
the sum of $500 each, received the money
thereon nnd made no accounting whatever
for tlie same to the department of posts.
There stands against him, therefore, the
charge of unlawfully appropriating $1,0W) of
the Cuban postal funds for his own use.
The report also calls attention to mnny
large expenses by Rathbone for which no
vouchers wero filed, ulthough they could
easily havo been obtained. For some monthu
miscellaneous expensed aggregated as mirh
as $S50. Such Items an "repairs, $250;"
"freight, $450," appear. Reevce explained
that he passed such accounts because they
had been allowed by the director general.
Tho report says the evidence Is too Ktrong
of collusion between Neely, Rathbone and
Reeves. It continues:
General Rathbone has been engaged In
the government service many years and
knows that such a method of presenting
bins and such expenditures nre wholly un
warranted and bear the strongest evidences
of corruption. Therefore, for him to np
Drove and nnnroprlnte such accounts ren
ders htm equally guilty ylth Neely. The
loiai oi tnc.e miscellaneous expenniiurvs
wns $ii,2;'0. A part of them 'were legitimate,
but a Inrgo pnrt was doubtless fraudulent
expenditure, for which Kathlxmc, Neely
nnd Reeves nre equally responsible.
11ov Thompson Worked It,
With roference to tho guilt of K. P.
Thompson, the postmaster at Havana, the
report explains that In September, 1899, he
issued four money orders In his own behalf
for $100 each nnd deposited for them In
lieu of cash a due bill for $400. When the
Inspection wns mado he took out this due
bill, deposited cash from the remittances,
and after the Inspection had been finished
he withdrew tho $400 and replaced the due
bill.
"Thompson knew his act was a crime,"
eays the report, "and when ho covered up
his shortage nnd deceived the Inspecting
officers ho plnlnly showed that he was aware
he had seriously violated the low."
Tho report eays Neely enjoyed the most
confidential relations with Rathhone nnd
wns regarded as tho most Influential with
him of all the postnl employes.
Tho report finds that Rathbone's ex
penditures In the payment of debts and liv
ing expenses were much In exce of his
salary; that In September and October. 1899,
within thirty days after the destruction of
the (surcharged stnmps, Rathbone paid over
$3,000 Indebtedness. In dlscufslug this sub
ject the report nays:
It Is evident that the money with which
this Indebtedness was paid was secured
from some other source than bis salary, and
up to this tlmo I have been unable to
learn of any source of Income that Director
General Hathbono had other than his com
pensation as director general of posts.
Tho report closes as follows:
Director General Rathbone maintains that
he Is Innocent of wrong-doing Granting
that what Director General Tlatbbono says
Is true, he convinces me of the grossest
carelessness In the administration of (bo
affHlrs of his olllce. or of nil utter incapacity
to comprehend Its duties and responsible
Hies.
Ilrlntovt's Ciini'l nxlons.
Mr. Drlstow cannot account for the draw
ing of fradulent per diem warrant for per
Bonal expenditure from tho postal revenues,
not for the cashing of the warrants ami a
failure to account for tho money serurcd
thereon. Whether Director General Rath
bone was guilty with Neely in the embez
zlements endeavored to bo covered up by
tho destruction of surcharged stamps l at
this time a question more of opinion than
proof, but there is no doubt that In the
matter of per diem, personal expenditures
nnd tho warrantK which wero cashed and the
money unaccounted for. he unlawfully and
fraudulently appropriated to his own use
money from tho Cuban pchtnl revenues.
Neely, Reeves, Thompson, Meyer and Mes
ensro are now under arrest nnd Rich Is
held as a government wltnitis. He con
cludes.: From tho information obtained by this In
vestigation, which I have endeavored to set
forth In the foregoing pages, it Is my belief
that It was Justified In recommending the
removal of Director General Hathbono from
olllce. and 1 further believe that he should
be required to answer for fraudulently and
unlawfully appropriating to his own use
moneys rrom tne posmi revenues or Cuba.
A gentleman recently cured or dyspepsia
and cannot eat, and some have none that
gave tho following appropriate rendering o!
Hums' famous blcs'lns. "Some have meat
want It; but we have meit and we can eat,
Kodol Dyspepsia Curo be thanked." This
preparation will digest what you rat. It
Instantly relieves and radically cures Indi
gestion and all stomach dliorderu.'
Colored lie pnliltijiuiN Orunnlre,
Colored republicans of the Sixth ward
have organlzod a Mckinley and Roosevelt
club, with the following olllcers: I'resUent,
Spud ; vice president, A. II. Jett; secre
tary, Albert Green; asslstunt secretary,
Henry I'ltcher; treasurer. Albert Glover,
Tho club will meet In Idlewlld hnll, on
Twenty-fourth street.
Motherhood
and the dally household caren demand n
mild Ionic for the housewife nnd mother.
MALT-NUTRINK Is the bct and easiest
taken. Made by the Anbeuser-Rusch Drew-
ng Ass'n. That assures Its merit. Sold by
an druggists.
MINING IN THE BLACK HILLS
Two Bit and Old Oalona Gamps Are Again
Quite Active,
FORMER GRABLE PROPERTY DEVELOPING
r Company Is Itrlnclnft Out the
Iteornnnlrrd I'lilun Hill anil Will
Ureet .eiT Deduction
Work.
DKADWOOD, S. D., July 25. (Special. )
One of tho coming mining districts of the
Dlack Illlls Is In the vicinity of Galena, in
the Dear Dutto country, east of Deadwood
about nlno miles. Two Dlt camp Is
first. This enmp was boomed hard
three years ago, but collapsed after the sev
eral Hardin companies hud spent thousands
of dollars In building expensive hoisting
plants. Two 1)11 Is awakening to life again
The Original Hardin mine, on the east fork
of Two Dlt creek, has been shipping ore of
fair grade to tho Deadwood smelter for
somo tlmo. It Is asserted that the Hardin
brothers, who have been promoting the
deals In the camp from the start, are work
ing on a plan whereby all of the five compa
nice will bo consolidated, In which event
the work of opening up the lower quartzlto
levels will be concentrated In ono place.
Tho topography ot the camp ts considered
very favorable for ore bodies.
Over tho divide commencing with I.lttlo
Strnvberry gulch and extending eastward
to Galena more development work has bien
done than around Two Hit. In this camp
tho old Union Hill, now the Galena Mining
company, has been working steadily ever
since tho G ratio failure three years ago.
At present n tunnel Is being driven 700 feet
from the bottom of the old etiaft In the
Hoodoo mine and drifts nre also being run
from the Kureka shaft to determine the ex
tent of the ore bodies. Considerable ore
has been taken out ot both ot the in I new
and some has been shipped within the last
six months. Tho Galena company owns
over 3,000 acres of ground. Some of the
eastern stockholders, who were In Deadwood
recently, tdated that It Ik the Intention to
make the company one of the largest In the
Dlack Hills. The ore will both cyanide nnd
chlorinate. There Is also a large amount .
of oro cxpeclally adapted to the utueltlng I
process. Tho company eventually Intends 1
to complete the smelting works nt Kdge- I
mont, which were partly built by Orable I
The company Is backed by capitalist in
New York City nnd Philadelphia. I
WnrU on Other I'rnpert leu,
The Gilt Kdgo mine which has been the
largest shipper In the district In recent j
years, is to oe started up again, ine mine
Is owned by the Specie 1'ayuient company.
The large chlorlnatlon works at Rapid City
were bonded by the company and for n time
oro was shipped thero for treatment. Dis
sension aroso among the stockholders and
the mine closed down. It Is stated that the
Internal trouble has been settled. The mine
contains a very large vertical of ore, which
will UBsay from $30 i $110 per ton.
Joining the Gilt V- ,t on the south and
east Is tho Dakota Maid mine, owned by
Joseph King of Deadwood. Thirty feet be
low tho surfaco there Is a body of oro over
100 feet wide, which will cyanldo to per
fection. Ore has been shipped from the
mlno that ran as high as $900 gold to tho
ton. It Is given out that a Denver mining
company has practically closed n deal on
the ground and that a cyanide plant will be
erected. The mlno Is developed extensively.
Tho Golden Reward oompany Is about to
sink a new shaft on the old Oro Flno
ground south of the Dakota Maid. The mlno
was worked years ago by the Deadwood
and Dclawnro company. The mine has a
large vein of galena ore.
The old DuIIIon mine has been purchased
by Dr. H. H. Muggley of Chicago and reg
ular shipments of ore have commenced to
the Omaha smelter. The oro Is a lead prop
osition .and runs pretty high. The body of
ore Is over 100 feet wide.
Tho Rrltlsh-Amerlcan company is working
on a gold proposition north of the Gilt Edge
mine. A shaft Is being sunk on n vertical
of cyanldlng ore, which has given an nver
ago assay from the surface down of $1 gold
per ton. Adjoining the company's ground
is the Rrody mine, which Is probably the
richest In the cntlro district. The richest
ore comes from a small vein, but Us rich
ness makes up for the smallness of the ore
body. Assays ns high ns $12,000 has been
taken and tho general average of the vein
ts placed by tho owner at $000 gold per ton.
The rich vein passes Into the Dritlsh-Amer-lean
ground.
A largo nmount of placer mining Is being
carried on in tho small gulches in tho dis
trict, with good results. The entire dis
trict Is making a steady growth, without
much boom talk. A railroad to the dis
trict from Deadwood will soon be built,
which will make cheap transportation for
the ores.
Tho Detroit & Deadwood company of
Michigan and New York Is constructing a
200-ton cyanide plant on Annlo creek, eleven
miles west of Deadwood, A strictly west
ern mining exper' Is In chnro of tho en
terprise. Reforo n cent was expended on
the plant a piece of ground wuh purchased
which contained n large amount of low
grado cyanldlng ore. The ore body wab
measured and calculations mnde and upon
tho findings tho mill Is being built. It Is
slated that there Is ore enough In sight to
run tho company six years.
II us y Aliont Keystone.
KKYSTONK, S. D.. July 25. (Speclnl.)
Tho Crown Hill Mining company, which but
recently erected a mill for crushing the
oro from the Spoknne mlno nnd which has
been successfully operated for n month or
two, 1ms decided to dotiblo the capacity of
tho mill. Tho Bhaft. which Is now down o
distal. of 175 feet, will be sunk another
100 feet nnd water will bo pumped from the
creek south of tho mill, a new pumping
outfit. belnh purchased for thnt work. This
company Is doing a legitimato business.
Tho Holy Terror has struck a ledgo nf
ore four feet wide on the 800-foot level, nnd
tho Holy Terror mill, which has been Idle
ubout two weeks, has commenced operation.
The difficulty between the Horney Hy
draulic, company nnd tho D. & M. railway
over the title to the right of way through
the town Is likely to result In n law suit.
In order to clear the property of tenants
who have leases thereon, without going to
law, tho Durllngton offered them $2,000
to get ort In thirty days. The railroad peo
ple claim that the Harney Hydraulic com
pany was to pay half of this, which It now
refuses to do, nnd the people on the right
of way will not move their houpes off till
the money is forthcoming.
Sqiinttrrs Will III DeeUInn,
IMKRRi:, S. D.. July 25. (Special Tele
gram.) Attorney Hughes, for claimants, to
dny received a telegram from Wntihlngton
stating that tho socrotary of the Interior
had overruled the genoral land office In the
caso of Robort Snyder against the Stato of
South Dakota, ruling In favor of Snyder.
This gives squatters on tho old Fort Sully
military reservation tho right to file on the
tracts on which they lived regardless of the
provisions of the act opening the reserva
tion under which the stato claimed tho right
to all ot it. Thero are about a dozen such
settlers and tho state filings on the tracts
they claim will bo ,ct aside by this ruling.
HINT Muddy KiiIIiik I'nrnis,
SIOUX FA M.S. S. D.. July 25.-(Spoclal.)
Tho Missouri river Is again playing havoc
Ir, Hagen's Dend. Since the recent rains
the river has completely washed away the
old Mines farm nd encroached upon neigh
boring property. The Jackuon ranch, once
STOMACH CATARRH.
From Maine to Florida Peruna's Fame
Has Spread.
Mr. Gottfried Hemmerkh, Palmer. Fla.
Oottfrlod Hemmerlch of l'almer, Fla.. says
tho following In regard to I'eruna for ca
tarrh of the stomach:
"My troublo was catarrh of the stomach
and your medicine, has performed a miracle
In my case, n tho doctor I consulted eald I
could not live It I stayed In Florida. Ho
wanted to send me to n hospital In Knox
vllle. Tenn. If 1 had done tblo 1 surely
would have died. 1 took Ferunn and now
again 1 hare life and energy, nnd new flesh
nnd blood has replaced what I lost."
Mr. H. C. Caraw writes from Drockton,
Mass.. the following:
OI
o
o
o
o
o
iOIOOIOOIOOIOIOOIOIOIOIOIOIOjCO00
On the Fifth
Wo still linvo some except ionnll.v desirable rooms
although about three-fourths of the rooms were rented
when the army headquarters moved out. That is merely,
an index of tho popularity of
...The Bee Building...
The entire fifth floor has been re-decorated and pre
sents n most attractive appearance. An office here, in a
tire-proof building', will cost
fire traps.
R. C. Peters & Co., Rental Agents, i
The Bee Building, 17th
O
OIOtOIOIOIOIOIOIOIOOIOIOOllOIOfOIOIOIO
SCHOOLS.
Jtf Wenlworih Military Academy
fejlF OovernmnturrTtilon. Ptato commlmionn to gratlutira. rrrp
WjCgj?f nd MitlonM Acdemlc. COL. SANDFORD SELLCRS, M. A.. S
a valuable piece of property, is also In great
danger of belnit 'devoured by the river. It
Is estimated that durlnc the past three years
Yankton county has lost at leant 10,000 acres
ot valuable fnrm land through erosion
caused by the waters of the "UIk Muddy."
PROMINENT MINER IS DEAD
Hntiert l'loorninn, Formerly of llentl
wooil, Siii'Ciimll tn I'lieuinniiln
at Cnie oinr.
RAPID CITY, S. D., July 2.". (Special
Telesram.) News 1a received of the death
ot Robert Floormau, one of the bent known
mlnliiR men In the west. Ho came tn Dead
wood In 1S76 and lived there Until 18!5. He
fH instrumental In orKanlzIng a number
of laiRe companies to operate mines In the
Illack Illlls. He left the Hills for British
Columbia, where he mined successfully un
til ho went to the Klondike. Ills dniiKhter
discovered the first ledne of quartz ore In
the Atlln district ledge was nfterwnrd
sold for $200,000. A few months !io ho
took hli family to Capo Nome and thero he
died of pneumonia. The remains have been
sent to Seattle for temporary burial. He
left a fortuno of $76,000. A wife and three
children survive him.
Wnter lleli Train.
CHKYKNNE, Wyo., July 2.1. (Special ) -A
cloudburst In the vicinity of Ilonleaux
on the Cheyenne Northern, crnmcd a
washout one mlln south ot that station last
nlnht. About thirty feet of track wero dam
aged and traffic delayed soveral hours. Tho
regular passenger train from the north, due
hero at 12:15 a. m., did not arrive until 8
o'clock this morning. Section gangs were
sent to tho scene nt once and the track was
repaired.
Itensbaw creek was fUlfrt to overflowing
In the vicinity of Bordeaux, and a number
of bridges were washed out. It Is reported
several persons had narrow csrapcn from
drowning. Joe Wilde ot Kort I.arumle was
driving to Hnrdraux nnd had Junt crossed
a small bridge when the Htructure was car
ried away by the Mwollen stream.
Cuttle I'lnKtie In South DnUotn,
YANKTON, S. D.. July 25. (Special.)
A peculiar nnd dendly dlieaeo has recently
broken out In the cattls herds near l'uk
wana. During the last two weeks J. It
Sanborn of tho Carpenter ranch has lost
twenty-eight head and other herds havo Buf
fered to a less extent. Tho animal will be
suddenly attacked nnd usuully does not live
to exceed ten mlnutfs. Drs. Il"nry Ship
ley of Sheldon, la., r.ne of the state veterin
arians, nnd S. M. Smith, a veterinarian o'
Mitchell, havo visited tho affected district
a nil made examinations to determine the
nature of the dlsfase. They say thero are
symptoms of blackleg, spleenntlc fever and
poisoning. The stcmnch of one of the dead
animals has been sent to Chicago for
nnalysls.
Accident In Itnllriinil Mnn,
SIOl'X FALLS, S. I)., July 25.-(Speclal
Telegram.) Whlln attempting to uncouple
ihe nlr brako hoso between a couple of cars
In tho Mllwaiil'-e railroad yards hern today
Ii. C. McDonnld, a brakeman well known on
the line hotween hero and Sioux City,
slipped and tell under the cars ami badly
crushed ono of hlH limbs. The Injured man
was taken to tho city hospital, where the
attending physicians believe his chances for
recovery are good.
.Sieelnl Ali-Hnr-IIni Mulil,
At a meeting of tho Ak-Hur-icn soliciting
committeo reports Indicated that tho
paid membership of the order hnd i cached
m: mid owing to conflicting datea nnd tho
excursion tu York the committee will not
meet again until Friday. It has been de
cided, nlno, to set apart a nlrht encb dur
lug tho coming month for the Induction
of doctors und lawyers Into tho order, at
which tlmo Invitations will probably be
Issued to the members nf thote professions
In many surrounding towns to withstand
the ordeal. In company with locl phynl
cUni and burrlsters,
"About 10 years ago I was greatly dis
tressed by dyspepsia and took no comfort
day or night. 1 tried everything that phy
sicians prcwrlbcd without relief whatsoever,
A fricml insisted on my ileitis Pc
rtuitt. It worked wonders atul en
tirely cured ine of the Ulsumceablc
disease. I cannot speak too highly
of Peniiin."
Mr. James R. Hunt writes: "I have fcesn
troubled with dyspepsia for fourteen years.
My stomach was sour, my bowels coitlvo,
had palpitation of the heart, Indigestion,
torpid liver, was nervous, did not sleep
good, my head felt light and had specks be
fore the eyes. 1 tried patent modlclnsi,
various remedies, nnd consulted physicians
In vain. Consequently I procured a battte
ot Manalln and have since been using It
continually. I have realized ranch bonefit
from its une. U keeps my bowels regular,
and 1 think It Is the best dyspepsia remedy
1 ever saw,"
Mrs. N. K. Drown, Ashevllle, N. C. write
"For several years 1 was troubled
with indigestion, au incroaso of
acid in the stomach, headache, loss
nf appetite, dizziness and almost
complete paralysis of the left arm.
My friends advised ine to try Ve
num. Four bottles cured me sound
and well, and I have not felt a
symptom of my trouble slnco."
Address Dr. Hnrtmnn, Columbus, Ohio,
for free book.
o
o
o
o
o
Floor....
you no more than in somo
o
o
and Farnam Streets.
W
Oldest and 'arrest
military s. jool la
Central West.
parstloo for UnWrrilHn
bupt., LEXINGTON. NO.
SCHOOLS.
Racine College
Grammar School
(4
The School That
Makes Manly Boys."
C Its Graduates enter any Col'
lege or University, Social
and Athletic Advantage!.
i Military Drill,
For Boys ol 8 Years Old and Upward.
Illu.trMe'l (.'AUlogue. nt on appllontlon tn
I Rev. H. I). kOIHNSON, fl. A Wirdcn,
f Racine, Wisconsin,
Missouri military""acaoemy
New bullilngs Cnnipus 100 acres. Model
school home Kneully of MKN-not boyrt
Speclnllsts from best schools of America
and liurone
YANCi:Y & FONVIM.K, Moxlco. Mo,
Cur ch Dandruff, Falling Hair, llrtttle Hair
nd all Scalp Troubles, such as Itching,
Eczema, Eruptions, oto. Purely VecetabU,
harmless and reliable.
Cure Guaranteed
eve& afttr all other rtmtditt hmvt failed
or money refunded.
A, R. IlIlKMIill CO..
Cklcmsr.
For Sale fcjr
.Sherman & M (' Jinicll Drug Co.,
rdycrs-Dlllo!! Drug Co.,
M. A. Dillon. South Onulin.
Trmle .Miiillcl lij
M. Monbelt I. air b.ti.mr,
A. 1.. Underlnud.
Hleliardsnn Drue Co.
This is the season where the question
A SKIN OF BEAUTY IS A JOY FOREVER
K. T. ri:I.tX (iOURAUD'S OKIF.NTAI.
CREAM, OR MAGICAL BEAUTIFIER.
D
Itrnmvp Tan, I'lmplti,
I'rei Mes. Mold Ulur a.
nil nil uini hkln ,11a
am nnd avery
hlnilah en b.nit,
and ijellen ite, .
tun It rus atnnl
Hie teat or 31
year, and a ai
Imiiiileaa r inalo
It to Ii. sura It
l properly mnde,
!llt no COUtl'er-
' it ut aiiiuur
nn me Dr. I, A
Sd)in raid to a la
ily or Ilia haul ton
In liutlentl!
Ah you Indies will use them. I reeom
mend 'COI'ltACDH CRKAM Its the least
harmful of nil the Kkm preparations." For
salo by nil Druggists nnd Fancy Ooods
Deulera In tho U. 8. nnd ISuropo.
I'HIIII. T. IIOI'KI.VS, I'rnn'r,
37 Oreut Jones St., N. Y,
WOMAN'S CROWNING GLORY
It In halt, IrXiif iii rl'iih-d, li Li.,
telt't tit lla nilalil f olof wllhau ibiutw loataltb
or n.lp :y ana tpp!lilwn allaa
Imperial Hair Regenerator
Till' cTlaininn lliln rnt A.. .!' ... .
THE STANlMKU hair coihimc. - ii u
.uioiuiriT nwrniei,. a.. pro4u.ta Calar
fan. tn ONI! A I' r f. I L A 71 n N Lat
aloVl IIS. h.,.r,l. ,1. ,.i. ,.i..'.j . .
iDttrltl CKcn.MI.Co.,2 W.2.M SI.,Naw Ywk
by druggists and hairdressers,
Sold
HEADACHE
Strotm's Ht4och
Cac aula i walllvlr
eura alt klnrU kaad
ftcbo. No cure, no py. 2Ic. At all
