When the
Inland Herald was just shy of five months old, word reached Spokane that Haynes was being sought back in St. Louis to face three charges of embezzlement adding up to $5,000 in a lawsuit filed by the Manhattan Insurance Company. There were also other instances of malfeasance totaling as much as $100,000, which some victims counted as losses and chose not to prosecute because they expected Haynes to pay the loans back and did not want others to know. Haynes blamed the rival Spokane paper, the
Spokesman Review, for stirring up matters that he said had already been resolved. Haynes was described as "magnetic" and "a wonder." A man who had an office near Haynes and became involved in Haynes' mission work, said, "I thought there was never a better man... Everything he did seemed sanctified]." He loaned Haynes $8,300 in
bonds in exchange for a promissory note, that, when he tried to redeem it, had no value. He said, "I don't know how he did it. I was not asleep any moment of the time, but the trade was made, nevertheless." The
Inland Herald was backed financially by breweries and saloon owners, as well as railroads, making the Inland Herald, according to a journalist in St. Louis, "a champion of
liberal interest in Spokane" and "a railroad organ." Rev. J. H. Bennett from the Corbin Park Methodist Church in Spokane,"denounced Haynes from the pulpit... as a 'power for evil' because of his support of saloon interests." In a response on July 27, Haynes stated that he was an innocent man who was persecuted. He wrote that he fell into debt out of helpfulness to others and had a long-standing record of honesty. He said "No man can be a liar or rogue and keep up the pretense every hour of the day for years at a time." Haynes also denounced the
grand jury hearing, which, he said, told only one side of the story. The circuit attorney's office would not drop charges, despite efforts of friends to pay off the Manhattan debt. An attache of the circuit attorney stated, "This man was indicted by the Grand Jury. The State does not indict men to force collections or to be party to compromise. There is no chance whatever of this matter being settled any other way than by trial before a jury." In the meantime, Haynes' attorney labored to negotiate a bond while promising Haynes' return. The state responded with the promise that if Haynes did not return voluntarily, they would pursue
extradition despite law enforcement's having no money to pay for Haynes' return.
Victims and friends Haynes admitted that he owed banks and individuals about $80,000. All the notes Haynes had failed to honor ("a thick sheaf") were presented to the grand jury at the time of his indictment as further evidence of a pattern of
defalcation. Most who lost money mentioned that Haynes' charisma, history of benevolent giving, Christian associations, and way with words were major factors. John H. Vette, a money-lender who lost $10,000, described Haynes as "the smoothest proposition I ever encountered." Most victims of his fraud were friends, clients, and co-workers in the mission who were convinced that Haynes was extremely trustworthy and well-intentioned. Haynes used prayer meetings and ministry settings as a means of obtaining, by "a species of
hypnotic influence," large sums of money from others. George Cale, who had trusted Haynes with a loan and lost, died bankrupt shortly after discovering his loss. Rev. Edward Card, a
gospel singer, reported that Haynes promised him $150 weekly to work at the St. Louis Mission, but he received only $50 on a sporadic basis and was owed back pay. He stated that sometimes he went for weeks without a paycheck. P. N. Clapp, an employee of a
livery, signed a note for additional
insurance, making a verbal agreement for what was to be a 90-day loan. Haynes took his money, but never returned the
policy and then sold the worthless note to a money lender, who began demanding payment of Clapp. Clapp attempted to resolve the matter privately with Haynes and gained some satisfaction, but he gave Haynes the note for a second time when he asked for it. The second time Haynes did not make good on the debt, and Clapp filed charges. Charles Nelson Hunt, another businessman, stated that Haynes came to his home where he made a plea for money. Hunt offered up $12,000 worth of stock "for a few weeks," noting that it was the sum total of his
assets. Upon receiving the stock Haynes went to the bank where he borrowed $5,000 on the strength of it. Five years later Hunt was able to buy his stock back for $6,000 — the total Haynes had borrowed with interest, settling for a significant financial loss on an unfulfilled promise. == 1911–1914 Out of the country and back ==