The morning call., 1894-11-19
FOR sWINDLING BoNDsMEN.
They Waited in Vain For Drafts
That Never Came.
LOS ANGELES MEN THE DUPEs.
Learning of the Flight of TheiI
Man They Caused Ills Arrest
at Denver.

DENVER, Nov. 1S.-James w. Payne.
prominent citizen of Los Angeles and a
contractor of cereal supplies for the United
States Government military posts west of
Of the Mississippi River, was arrested to-
night at hotel by Detectives Peter Eales
and John Leyden on a charge of embezzle-
ment and felony. The arrest was made at
the teleeraphic request OF Chief Glass of
The Los Angeles Police Force, received late
on Saturday night at police headquarters
in this city.
The specific cha rye against Payne is the
embezzi cement of moneys received on ac-
count of his contract from the Chief
Quartermaster of the Department of the
Colorado, Major E. B. Atwood, with in
tent 20 deiraud his bondsmen. The story
is very peculiar one, and the prominence
of the man arrested lends a sensa tlonal
air to the affair. Payne has had a con-
tract for number of years to supply many
military posts in the West with cereal sup
plies. His present contract amounts TO
over $4,000. His bondsmen to secure his
fulhllmentof the contract are two promi-
nent citizens of Los Angeles.
Il is said that some time ago he Dor
rewed some money of them, promising TO
pay ,hem 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 il might contain. This arrangement
seemed perfectly agreeable to the bonds
men.
According to the detectives who arrested
him, and the allegation that is the basis
for the criminal charges. Payne shortly
afterward. on November II. wrote to
Quertermaster- General Atwood that there
were many men of his name in Los An
geles, and in order that there might be no
miscarriage ia the delivery of his letters,
he directed that future drafts might be
sent to him at a new address. Major At
wood in reply sent him a draft for $780,
his bondsmen did not learn of this action
on the part of the contractor until their
suspicious we're 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 con-
tract was overdue. and a telegraphic in
Qulrv was sent 10 the military head
quarters in this city to ascertain the ad-
dress 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 requesting
bis arrest followed few hours later De-
tectives 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 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 55 He
denied the charge of embezzlement siren
uously.
81 do not see." said he, chow they can
charge me with embezzlement, as l only
used my own money. 1 gave my bonds
men power of attorney. but that did not
prevent me from attending to my own
personal business nor suhiugate my indi-
vidual liberties. The drafts were my own
personal property and l cashed them as
such"
Los ANGELES, Nov. 18.-The sureties
on the bond of James W. Payne. arrested
tonight in Denver, charged with embezzle-
ment, are John A. Forthmann and John
J. Bergen, both of the Los Angeles Soap
COMPANY. The circumstances as reported
from. Denver have been confirmed by the
Chief Of Police and also by the gentlemen
named