Forney, Kaufman Co., Tex., Jan. 21 - In a difficulty about six miles southwest of town yesterday evening W.P. Newton shot and instantly killed Jim Peel. Immediately previous to the killing of Peel he (Peel) shot and seriously wounded George Hammond [Hamill] and slightly wounded Newton.

The scene of the tragedy was upon the land of W.P. Newton, and across the line in Dallas county. The inquest and examining trial will be held by Squire Woodson of Dallas county.

The difficulty originated between Jim Peel and George Hammond [Hamill]. It is claimed that Newton went along with Hammond at his (Hammond's) request, and was taking no part in the affair until Peel began shooting at him (Newton) when Newton drew his pistol from his saddle-pockets and shot him dead.

Newton sustained a flesh wound in the left breast and left wrist. His bridle reins were also shot in two. Hammond was severely hurt, although doctors say that nothing serious will be likely to result. Hammond is a married man. Peel was a young man, and lived with Theo. Lindsey on Newton's place.

Newton rode to town to-day. When seen by a News reporter he refused to discuss the matter previous to an examining trial. Hammond is confined to his bed several miles in the country, and can not be seen. Other witnesses to the tragedy refuse to make statements at present.