The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1894-11-19
A Prominent Citizen of Los An
geleS Arrested at Denver.
CHARGED BY HIS BONDSMEN WITH
EMBEzzLEMRNT AND FELONY.
Six Unmasked Men Make an Unsuc-
cessful Attempt to Hold Up a Pas
senger Train in Misslssfppi-Foiled
at Their Game, all the Bandits Fire
at the Locomotive Cab, Seriously
Wounding the Fireman.
Special to the RECoRD-UNIoN.

CIeCldi JO Jue hECORD-ON1ON-
DENVER, Nov. 1S.-James w. Payne, a
prominent citizen of Los Angeles, and
contractor of cereal supplies for the
United States military posts west of the
Mississippi River, was arrested tonight
at a hotel by Detectives Peter Ealles and
John Leyden on charge of embeZzle-
ment and felony. The arrest was made
at the telegraphlc request of Chief Glass
OF the Los Angeles police force, received
late on Saturday night at police head
quarters in this city.
he specific charge against Payne is the
embezzlement of moneys received on
contract of his accounts with intent to de-
fraud his bondsmen. The story is very
peculiar one. and the prominence of the
man arrested lends a sensational air to
the affair. Payne has had contract for
number Of years to supply many mill
tary posts in the West with cereal sup
plies. His present contract amounts to
over 500 His bond to secure his full
nllMent OF the contract are two promi-
nent citizens of Los Angeles. 1t is said
that some time ago he borrowed some
money from 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
that it might contain. This arrangement
seemed perfectly agreeable to the bonds
men.
According to the detectives who ar
rested him and the allegation that is the
basis for criminal charges, Payne, shortly
alter and on November 18th, wrote To
Quartermaster General Atwood that
Angeles, and i'll order that there might be
no miscarriage in the delivery OF his let
ters, he directed that future drafts might
be sent to him at a new address. Major
Atwood, in reply, sent him a draft Tor
81, 500. 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 Government stamp. They
Instituted an inquiry, and learned that
one of the periodical payments on account
OF the contract was overdue, and a tele-
graphic inquiry was sent to the military
headquarters in this city to ascertain the
address of Payne. The answer revealed
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 request
ing his arrest followed few days later.
DGIoCllFeS GdlloS dIlU Icy ueH VlSlIGu JD9
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 was closeted with Chief of Police
Armstrong for nearly an hour. In his
pocket was found draft for $50 30. He
denied the charge of embezzlement
strenuously. Il do not see," said he,
''how they can charge me with embez-
element, as / used only my own money.
gave my bondsmen power of attorney,
but that did not prevent me from attend
ing to my own personal business nor
subjugate my individual liberties. The
drafts were my own personal property,
and / cashed them as SUCH"
THE STORY CONFIRMED AT Los ANGELES.
Los ANGELES, Nov. 1S.-The sureties
on the bond of James w. Payne, arrested
tonight in Denver charged with en-
bezzlement, are John A. Forthmann and
John j. Bergen, both of the Los Angeles
Soap Company. The circumstances as
reported from Denver have been con-
firmed by the Chief of Police and also by
the gentlemen named.