The herald., 1894-11-19
B|LKED HIS BONDSMEN.
Army Contractor Payne's
CrOOkedneSs.
Two Los Angeles Capitalists
VictimiZed.
The victimizer Under Arrest for
Embezzlement.
Taken In Custody at Denver st tho
Tolegraphic Request OF Chief
Glass-A Sensation al
Story.
By the Associated Press.

DENVER, Nov. IS.-J6m66 w. HSJn6,
prominent citizen of Los Angeles, and
a contractor OF cereal supplies for the
United States government military posts
west Of the Mississippi river, was ar
rested tonight at hotel by Detectives
Peter Eals and John Leyden, on q
charge of embezzlement and felony.
The arrest was made at the telegraphic
request of Chief Glass of the Los An
geles police force, received late on Sat.
urday at police headquarters in this
city.
The specific charge against Payne is
embezzlement OF moneys received on
quartermaster of the department of
Colorado, Maj. E. B. Atwood, with in
tent to defrsud his bondsmen. The
story is very peculiar one, and the
prominence OF the man arrested lends
sensational air to the affair. Payne
has had q contract for q number OF
years to supply many military posts in
the west with cereal supplies. His
present contract amounts to over $780,
600. His bondsmen to secure his fulfill
ment Of the contract are two prominent
citizens OF Los Angeles.
1t is said that some time ago he bor-
rowed some money of them. promising
to pay them out OF the money received
from the wsr department. In order
that they might be doubly secured for
the loan, he gave thom q power Of at
torney to open his mail aud hold any
drafts or remittances that it might con.
easv
fectly agreeable to the bonds men.
According to the detectives who ar
rested him and the allegation that is the
basis for the criminal charges, Payne
shortly afterwards, OF November 18th.
wrote to Quartermaster Atwood that
there were many men of his name in
Los Angeles and in order that there
might be no miscarfiase in the delivery
of his letters. he directed that future
drafts might be sent to him ct . new
address. Major Atwood in reply cent
him draft for $500. His bondsmen
did not learn OF this action ON the part
of the contractor until their sus-
picions were aroused by receiving
no letters addressed to him bear
ing the government stamp. They in
stituted An inquiry and learned that one
OF the periodical payments on account of
the contract was overdue and a tele-
grapic inquiry was sent to the military
headquarters in this city to ascertain
the address of Payne. The answer re-.
vealsd his alleged duplicity and they
took steps to secure themselves.
Payne in the meantime left California
for Colorado. He arrived in this city
on Saturday night. The dispatch re-
questing his arrest followed few hours
later. Detective Eals and Leyden visit.
ed the hotel but learned that the man
they were after was out with some
friends. Last night they were more
successful and placed him under arrest
in his room.
Payne was taken to the police station
and closeted with Chief of Police Arm
strong for nearly an hour. In his pocket
was found draft for $20.55. He denied
the charge of EN- bezzlsment strenuonsly.
II do not see," said he, "how they
can charge me with embezzlement as 1
only used my own money. l gave my
bondsmen q power of attorney but that
did not prevent me from attending to
my own personal business, nor subju-
gate my individual liberties. The
drafts were my own personal property
and cashed them as SUCH"
[Chief of RSlice Glass, when seen at q
late hour ls@t night concerning the fore
going dispatch, stated it was substan.
tally correct. Payne ia we'll known in
this city. His bondsmen are John A.
Forthmann and John J. Bergin of the
Los Angeles Soap company.-ED.].