The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-11-19
DODGED HIS DEBTS.
CLEVER SCHEME WORKED BY !
LOS ANGELES MAN.
His Creditors, However, Caught on,
and Now He is Held in Denver on
the Charge of Embezzlement-
Has No Fear of the Result.

Denver, Col, Nov. 1S.-James w.
Payne, a prominent citizen of Los
Angeles, and a contractor of cereal
supplies for the United States govern
ment military posts west of the Mis-
sissippi river, was arrested at hotel
| by Detectives Peter Eales and John
Legion on a charge of embezzlement
and felony.
The arrest was made at the tele-
graphic request of Chief Glass, of the
Los Angeles police force, received late
Saturday night at police headquarters
| in this city.
The specific charge against Payne is
embeZZlement of moneys received on
account of his contract from the chief
quartermaster of the department. of
/ Colorado, Major e. B. Atwood, with
intent to defraud his bondsmen.
The story is a very peculiar one, and
the prominence of the man arrested
lends a sensational air to the affair.
| Payne has had contract for a num-
her of years TO supply many military
posts in the west with cereal supplies.
His present contract amounts to over
$4,000.
! His bonds to secure his fulfllment of
the contract are signed by prominent
citizens of Los Angeles 1t is said that
some time ago he borrowed some
money of them, promising to pay them
out of the money received from the
war department. In order that they
might be doubly secured for the loan
he gave them power of attorney to
open his mail and hold any drafts or
remittances it. might contain This
arrangement seemed perfectly agree
q BILE to the bondsmen
I According to the detectives who ar
rested him, and the allegation that is
based upon the criminal charges. Payne
shortly afterward, on November II,
wrote to Quartermaster General AT
wood that there were many men of
his name in Los Angeles and in order
that there might be no miscarriage in
the delivery of his letters he directed
that future drafts might he sent to
him at a new address.
Major Atwood,ein reply, sent him a
draft for $1,000. His bondsmen did
not learn of this action on the part of
the contractor until their suspicious
were aroused by receiving no letters
addressed to him bearing the govern
ment stamp. They instituted an in
quiry and learned that one of the peri
odical payments on account of the con-
tract was overdue and a telegra phic
| inquiry was sent to the military head
quarters in this city to ascertain the
address of Payne. The answer re-
vealed his alleged duplicity and they
took steps to. secure themselves.
Payne in the meantime left Califor-
MIA for Colorado. He arrived in this
city on Saturday night. The dispatch
requesting his arrest followed a few
hours later. Detectives Eales and
Leyden visited the hotel, but learned
that the man they were after was out
with some friends. Last night they
We're more successful and placed him
under arrest in his rooms
Payne was taken to the police sta
ton and was closeted with Chief Of
Police Armstrong for nearly an hour.
In his pocketbook was found a draft
for 5000. He denied the charge of
embezZlement strenuously.
81 do, not see,'' said he, how they
can charge me with embezzlement, as
II only used my own money. | gave
my bondsmen power of attorney but
| that did not. prevent me from attend
ing to- my own personal business, nor
4 subjugate my individual liberties The
drafts were my own personal property,
and | cashed them as such"