On Christmas night in 1895, Shelton and his acquaintance William "Billy" Lyons were drinking in the Bill Curtis Saloon. Lyons was also a member of St. Louis' underworld, and may have been a political and business rival to Shelton. Eventually, the two men got into a dispute, during which Lyons took Shelton's Stetson hat. Subsequently, Shelton shot Lyons, recovered his hat, and left. Lyons died of his injuries, and Shelton was charged, tried, and convicted of the murder in 1897. He was paroled in 1909, but returned to prison in 1911 for assault and robbery. He died in incarceration in 1912.