Eugene was born on April 15, 1835, in Seneca Falls, New York; Payne was possibly named for Napoleon Bonaparte's stepson General Eugène de Beauharnais.

Eugene's father, Thomas Hubbard Payne moved to Chicago, arriving there at the time of its incorporation in 1836.

On April 16, 1861, Waukegan's second mayor, David Ballentine called public meetings at the Lake County Courthouse in response to Lincoln's request for soldiers to fight.

[7][8] The Waukegan Zouaves and most of the other volunteer companies enlisted for 90 days were disbanded after one month of camp life.

He fought in the battles of Pea Ridge where he was wounded, with his younger brother Corporal Frederick Payne being killed and scalped by the Confederate Cherokees.

Promoted to major, Eugene Payne fought at the Battle of Prairie Grove and the Siege of Vicksburg where at times he commanded his regiment.

He authored The 37th Illinois Veteran Volunteer Infantry and the battle of Pea Ridge, Arkansas Washington, 1903.