St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1885-07-29
SENSATIONAL SALTWATER.
e. E. Hayden Arrested, Charged With En-
bezzling $500.
r. W. Kerr Writes TO Destroy the
Bonds.
The Storm and Other Minor Notes of
Interest.
III. E. Hayden Arrested.


Ject Of discussion there comes the report of
another affair, which it is declared will prove
as great sensation before it is finally
ended. This is nothing less than the arrest
OF H. l.. Hayden. Saltwater agent of the
Chicago, st. Paul. Minneapolis 81 Omaha
railroad, charged on the oath of ID. Nj. Collins,
travelling auditor of the road, with embeZzling
SIS, 200 from the company on June 20, 1885.
Some time ago the auditors and accountants
of the road were in Saltwater investigating
the affairs of this station, and it was
whispered then that all was not as it should
be- But no definite information could be
obtained by the papers until yesterday,
when the assistant auditor, Thomas Hy-
men, and ID. NJ. Collins informed the
county attorney, Ira Castle, that they de-
sired TO secure
THE ARREST OF HAYDoN.
\ warrant was accordingly sworn out and
placed in the hands of Officer Erickson. who
proceeded to the Omaha office and arrested
Hayden. In the meantime Mr.. Castle put
in an appearance at the municipal court
and seemed very much annoyed that the
warrant had been issued. He departed in
haste for the depot, where Erickson was
waiting with his prisoner, leaving strict in
structiOns to the municipal court clerk not
TO let the id reporters get onto the case,
as they proposed to settle it. He returned
shortly with Hayden, the officer coming by
himself later. and applied to Judge Nethe-
way TO release the prisoner on his own
recognition for So, 900, to appear and an
swer the charge at 9 a. H., which request
the court granted. Mr.. Hayden declined
to say much about the case further than to
deny that he was guilty of any embezzle-
ment whatsoever. Il am not going to be
made to pay or suffer for
WHAT oTAER MEN STOLE,
if anything really has been stolen, which l
don't believe" he said. You see l am be-
tween two fires, the railroad company
and the North American Guarantee COM
pany of Montreal, Can, which is on my
bonds, and l offered to partially cOmprO-
mise matters to avoid publicity and delay"
Hayden, it will be remembered, was re-
Gently appointed secretary to the governor
of Alaska. and expected to leave for
there very shortly. This present trouble
will certainly interfere very seri-
Ously with his being able to
accept the place, if it does not definitely
exclude him from it. He says, however,
that he still expects to go out to the terri
tory shortly. The $50 is said TO be
divided among the several accounts in the
Office, the freight as well as the ticket de-
partment, and to be the aggregate of a
number of small amounts that have been
accommodating for some time. Hayden
claims TO have called the attention of the
road TO
THE APPARENT SHORTAGE
himself last September, but says it was not
then investigated, by some inadvertence.
Another person in position to know says
no shortage in truth exists, it is simply a
mistake in checking up divers accounts,
which expert examination will easily eX-
plain away. 1t is on the other hand stated
on very good authority that Mrs. Hayden
is now in Michigan endeavoring to
raise the amount of the deficiency,
and that she telegraphed yesterday that if
matters were held quiet for a day or two
she would secure the needed funds. This
theory is further Endorsed by the evident
desire of the railroad authorities 10 keep
the matter from the public and it is said
that the warrant was only issued yesterday
to brighten Hayden into settling up
at once. Hayden was formerly banker
at Alpha and Negaunee in Michigan.
He was president of one bank and vice
president of the other. 4 gentleman who
knew him at that time said lie was re-
Spected by all, and that when the crises of
1878 came, and his banks suceumbed, he
gave up
EVERY DOLLAR HE OWNED
in the world to his creditors, as an
honorable man should. About four
years ago he became agent here
for the Omaha railroad and at
once was we'll received and liked by all who
knew him. This confidence and respect he
seems to have enjoyed up 10 now, and
much sympathy is expressed for him by his
friends and neighbOrs. County Attorney
Castle said that he had been requested to
have the warrant issued by the railroad au-
thorities and had done so, but that efforts
were being made to settle the matter
mated to the reporter that ID. W. Collins,
who swOre out the warrant against him,
ana who is to succeed him as agent at Still
water, had been for long time anxious to
get his place and seemed TO think there was
some Unkind feeling in that quarter toward
him.
WHAT OFFICIALS SAY.
Mr.. III. n. Gray. auditor of the road, was
seen AT his residence on Holly avenue late
last night, and was asked as to the embez-
element. lie said the amount taken was
SS. 500. Most of it was taken during the
months of October, November and Decem-
Der last. Mr.. Gray thinks that Hayden
had no intention in the first instance
to embeZzle the money, but he used
little at first, and then little more, and
finally began to take it regularly and to
conceal his operations by classifying his ac-
counts. The enlightenment was discovered
about one month ago, and since that time
several expert accountants have been
examining the books to see if
any more defalcations can be
found. Mr.. Gray would not say whether
or not any more than the sum named above
was missing, but stated that Hayden said
he had never had the money himself, and
intimated that the clerks under him had
succeeded in getting the whole of it. This
proved to be falsehood, as the railroad
authorities had hunted up the
matter to demonstrate it. Bills
were paid with checks which Mr.. Hayden
indOrse and got the money on. From the
first knowledge the road had of the dis
honesty. about one month ago, accountants
We're put TO work on the books, and his
past career was examined into. 1t cannot
be learned that he is in any way disSolute
or given to gambling. Everybody is very
curious to know what he did with the
money, but ii seems no one can learn. The
case comes up for preliminary hearing in
the municipal court Saturday at Q a. m.